Choose the Correct Statement

question 46

Multiple Choice

Choose the correct statement:

• A)For DIs adopting advanced approaches to risk measurement, APRA requires the use of models that capture 'economic capital'.
• B)For DIs adopting standardised approaches to risk measurement, APRA requires the use of models that capture 'economic capital'.
• C)For DIs adopting combination approaches to risk measurement, APRA requires the use of models that capture 'economic capital'.
• D)None of the listed options are correct.

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Definitions:

Collection Delay

The period between when a company bills its customer and when it actually receives payment, impacting cash flow.

Average Daily Float

The average amount of uncollected funds in a company's checking account, representing checks written against and deposited in the account but not yet cleared.