Question
Which of the following is the risk when a bank fails in
honoring the commitment of payment of deposits to the customers due to inability to meet cash flow obligations?Solution
Liquidity Risk arises when a bank is unable to meet a financial commitment. This may arise due to variety of reasons. The entity may not be able to raise resources at reasonable cost. This may also arise when a bank is not able to exit an investment due to non-availability of counter party in the market resulting in impacting the liquidity of the bank in meeting its commitments.
Under which inventory method, would the inventory on the balance sheet best approximate the current cost?
Which Indian bank was instructed by the Reserve Bank of India (RBI) to stop issuing new credit cards due to IT system outages?
Which of the following committee oversees the credit/counterparty risk and country risk in a bank?
What is the minimum limit for investment in the Sovereign Gold Bond Scheme?
What is the purpose of the Motor Vehicles Act, 1988 with respect to insurance?
India INX is an international stock exchange located in the IFSC, GIFT city. It is a subsidiary of _______
To empower youth by providing them entry level skill training in Railway Training Institutes, “Rail Kaushal Vikas Yojana” (RKVY) was notified. Unde...
When does the extension of the Date of Commencement of Commercial Operations (DCCO) not be considered as restructuring?
Which group of ratios relates the financial charges of a firm to its ability to service them
Consider the following statements about the participants in the derivatives market:
1. Hedgers use derivatives to manage or mitigate risk by taki...
