In Terms of Liquidity Risk Measurement, the Financing Requirement Is

question 3

Multiple Choice

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

• A)total deposits minus core deposits.
• B)financing gap 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:

Evidence-based

Practices or decisions that are grounded on the most current and rigorous scientific research.

Face Validity

The extent to which a test or assessment appears effective in terms of its stated aims to those taking or observing it.

Frequency, Intensity, Duration

Metrics used to describe and assess the characteristics of an event or activity, particularly in contexts like exercise, therapy, and research.

Creaming

The practice of selectively choosing the best or most profitable customers or clients, often leading to discrimination against those perceived as less desirable.