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      Question

      "Liquidity Coverage Ratio" (LCR) ensures that banks

      have:
      A High amount of physical cash in vaults. Correct Answer Incorrect Answer
      B Enough high-quality liquid assets (HQLA) to survive a 30-day stress scenario. Correct Answer Incorrect Answer
      C No debt in their balance sheet. Correct Answer Incorrect Answer
      D Only current accounts. Correct Answer Incorrect Answer
      E Maximum loans given to the government. Correct Answer Incorrect Answer

      Solution

      LCR is a requirement under Basel III to ensure banks can meet short-term obligations during a crisis.

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