The Liquidity Coverage Ratio (LCR)and Net Stable Funding Ratio (NSFR)proposed

question 25

Multiple Choice

The liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) proposed by the Bank for International Settlements are scheduled to take effect in

• A)2011 for LCR and 2014 for NSFR.
• B)2012 for both LCR and NSFR.
• C)2015 for LCR and 2018 for NSFR.
• D)2013 for LCR and 2016 for NSFR.

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Definitions:

Direct Materials Inventory

Raw materials that are directly traceable to the manufacturing of products and are considered part of the inventory assets on the balance sheet.

Direct Materials Budget

A financial plan that estimates the raw materials needed for production and their expected costs.

Cost per Pound

A measurement of the cost to produce, acquire, or create one pound of a product or material.

Manufacturing Overhead Budget

A financial plan that estimates the costs related to the production process other than direct labor and materials.