The Liquidity Coverage Ratio (LCR) in Basel III

question 245

Multiple Choice

The Liquidity Coverage Ratio (LCR) in Basel III:

• A) is a new rule that compares liquid asset levels in banks to their available equity capital
• B) spells out a modernized system for calculating the required minimum reserve that banks must hold at the central bank
• C) compares liquid and reliably liquidating assets to expected cash outflows from specified run-off rates for various liability classes under a short-term stress scenario
• D) tied directly into the internal ratings-based approach for determining the liquidity of credit-counterparties

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