Which of the Following Statements About the Liquidity Coverage Ratio

question 601

Multiple Choice

Which of the following statements about the Liquidity Coverage Ratio is correct?

• A) The LCR is a measure to ensure that the reserve of high quality liquid assets is sufficient to cover short term demand for liquidity in a stress situation.
• B) the ratio (cash outflow in a 30-day stress period divided by high quality liquid assets) has to be greater than 100%.
• C) Covered bonds are class 1 assets.
• D) Obligations issued by central banks or government agencies are class 2 assets.

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