What Are the Two Major Liquidity Risk Insulation Devices Available

question 101

Multiple Choice

What are the two major liquidity risk insulation devices available?

• A)Deposit insurance and discount window.
• B)Liquidity planning and maturity ladder.
• C)Scenario analysis and liquidity index.
• D)Financing gap and the financing requirement.

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Definitions:

Interest Receivable

An asset account that represents the amount of interest income that has been earned but not yet received in cash.

Interest Receivable

An accounting term for interest income that has been earned but not yet received in cash.

Debt Investments

Investments made in bonds or other debt instruments, where the investor lends money in exchange for interest payments.

Amortization

The allocation of the cost of an intangible asset to expense over its useful life in a systematic and rational manner.