A) In the current situation, only small FIs have to hold 9 per cent of their liabilities in specified high-quality liquefiable assets.
B) Currently, FIs are required to have in place a regulator-approved liquidity management strategy.
C) Currently, FIs are not subject to the user-pays approach.
D) Currently, FIs are required to have in place a regulator-approved liquidity management strategy and only small FIs have to hold 9 per cent of their liabilities in specified high-quality liquefiable assets.
F) None of the above
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B) False
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A) The variability of deposit inflows and outflows.
B) The yield on liquid assets.
C) The acquisition costs of highly non-liquid assets.
D) All of the listed options are correct.
F) B) and C)
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A) All banks are required to comply with the liquidity coverage ratio by 2015 and will need to hold high-quality liquefiable assets that can be converted to cash to meet liquidity needs for 5 days.
B) All banks are required to comply with the liquidity coverage ratio by 2015 and will need to hold high-quality liquefiable assets that can be converted to cash to meet liquidity needs for 30 days.
C) Large banks are required to comply with the liquidity coverage ratio by 2015 and will need to hold high-quality liquefiable assets that can be converted to cash to meet liquidity needs for 30 days, whereas small banks will only need to meet liquidity needs for 5 days.
D) These days only small banks are subject to the liquidity requirement.
F) B) and D)
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A) The stock of liquid assets held in an FI's balance sheet will depend on the FI's willingness to trade off liquidity against returns and on its ability to use purchased liquidity.
B) The stock of liquid assets held in an FI's balance sheet will depend on the FI's willingness to trade off liquidity against returns but not on its ability to use purchased liquidity.
C) The stock of liquid assets held in an FI's balance sheet will not depend on the FI's willingness to trade off liquidity against returns, it will depend, however, on its ability to use purchased liquidity.
D) The stock of liquid assets held in an FI's balance sheet will neither depend on the FI's willingness to trade off liquidity against returns, nor on its ability to use purchased liquidity.
F) All of the above
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