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    Question

    Which of the following factors impact the adequacy of a

    bank’s liquidity position ?  
    A Present and future earnings capacity Correct Answer Incorrect Answer
    B Source of funds Correct Answer Incorrect Answer
    C Anticipated future funding Correct Answer Incorrect Answer
    D Management of current liabilities Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    A bank's liquidity position is considered adequate when it has enough liquid assets to meet its liabilities and other needs without significant risk. The a dequacy of a bank’s liquidity position depends upon its source of funds , anticipated future funding , present and future earnings capacity and management of its liabilities.  

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