📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    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.

    Practice Next
    More Banking Operations Questions
    ask-question