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      Question

      What are the mismatch tolerance levels for time bucket

      of 15 – 28 days  in the ALM statement?
      A 20% of cash out flows Correct Answer Incorrect Answer
      B 25% of cash out flows Correct Answer Incorrect Answer
      C 10% of cash out flows Correct Answer Incorrect Answer
      D 30% of cash out flows Correct Answer Incorrect Answer
      E 50% of cash out flows Correct Answer Incorrect Answer

      Solution

      In case the net cumulative negative mismatches during the Day 1, 2-7 days, 8-14 days and 15- 28 days buckets exceed the prudential limit of 5 % ,10%, 15 % and 20% of the cumulative cash outflows in the respective time buckets, the bank may show by way of a foot note as to how it proposes to finance the gap to bring the mismatch within the prescribed limits.

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