17-56 a Disadvantage of Using Asset Management to Manage a FI's

question 70

Multiple Choice

17-56 A disadvantage of using asset management to manage a FI's liquidity risk is

• A)the resulting shrinkage of the FI's balance sheet.
• B)the high cost of purchased liabilities.
• C)the accessibility of international money markets.
• D)tax considerations.
• E)loss of flexibility as a result of dependence upon purchased liabilities.

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Definitions:

Internal Consistency

A measure of the reliability of a psychological test or survey, based on the average correlation between items on the same test.

Cronbach's Alpha

A coefficient of reliability or internal consistency of a psychometric instrument, indicating how well the items in the test measure the same concept or construct.

Internal Consistency Reliability

A measure of how well the items on a test measure the same concept or construct, often assessed by Cronbach's alpha.

Parallel Forms Reliability

The consistency of the results of two tests constructed in the same way from the same content domain.