Which of the Following Statements Is True

question 63

Multiple Choice

Which of the following statements is true?

• A)Under the BIS scenario analysis, an FI needs to assess its liquidity position in comparison to other FIs in the market based on different scenarios.
• B)Under the BIS scenario analysis, an FI needs to estimate the size of cash flows for each type of asset and liability based on past experience.
• C)Under the BIS scenario analysis, an FI needs to assign a timing of cash flows for each type of asset and liability by assessing the probability of behaviour of those cash flows under the scenario being examined.
• D)None of the listed options are correct.

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Definitions:

Emotional Appeal

A persuasive technique that targets the emotions rather than logic or reason to influence an audience’s response or behavior.

One-sided

Information or arguments presented from a single perspective without acknowledgment or consideration of alternate viewpoints.

High Discrepancy

A significant difference between current states or conditions and desired or expected standards, often motivating change or action to reduce the gap.

Low Discrepancy

Refers to a small gap or difference between two states or conditions, often used in psychology and marketing.