Which of the Following Statements Relating to Required Stable Funding

question 7

Multiple Choice

Which of the following statements relating to required stable funding is true?

• A)The required stable funding (RSF) is found by subtracting the value of assets held and funded by the FI, multiplied by a specific RSF factor assigned to specific asset types.
• B)The RSF is found by adding the value of assets held and funded by the FI, multiplied by a specific RSF factor assigned to specific asset types.
• C)Assets that are more liquid receive a higher RSF factor.
• D)The RSF amount is determined by the liquidity characteristics of the FI's various on-balance-sheet contingent exposures.

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Definitions:

Modus Tollens

A logical argument form where the contrapositive of a premise is used to infer the negation of the hypothesis.

Hypothetical Syllogism

A logical argument composed of two conditional statements and a conclusion, based if the first premise is true, then the second one follows.

Modus Ponens

A valid form of argument in which if a conditional statement (“if p then q”) and its antecedent (“p”) are true, then the consequent (“q”) is also true.

Modus Tollens

A form of deductive argument that takes the form "If P, then Q. Not Q. Therefore, not P," which is used to derive a conclusion from a hypothesis by negation.