The Liquidity Coverage Ratio, Which Is Measured Under the Basel

question 53

Multiple Choice

The liquidity coverage ratio, which is measured under the Basel III guidelines, is the ratio of a bank's _________ to its ___________.

• A)liquid assets; projected net cash outflow
• B)liquid assets; retained earnings
• C)Tier 1 capital; liquid assets
• D)projected net cash outflow; Tier 1 capital

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Definitions:

Ray-Finned Fish

Jawed fish with fins supported by thin rays derived from skin; member of most diverse lineage of fishes.

Placental Mammals

Mammals that nourish their unborn offspring through a placenta, allowing for longer gestational periods and more developed young at birth.

Monotremes

Egg-laying mammals, such as the platypus and echidna, characterized by their unique reproductive system.

Marsupials

Mammals that carry and nurture their young in a pouch.