In Terms of Liquidity Risk Measurement, the Financing Gap Is

question 78

Multiple Choice

In terms of liquidity risk measurement, the financing gap is defined as

• A)total deposits minus core deposits.
• B)financing requirement plus liquid assets.
• C)rate sensitive assets minus rate sensitive liabilities.
• D)total assets minus total liabilities.
• E)average loans minus average deposits.

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Definitions:

Insurance Company

A business that provides coverage, in the form of compensation following a loss, in exchange for premium payments.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type.

Norman Daniels

A philosopher known for his work in health ethics, particularly his theories on justice, health, and healthcare.

Market Economy

An economic system where supply and demand determine production, distribution, and price levels, largely without government intervention.