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WorksheetsUnit 6
Total questions: 11
Worksheet time: 6mins
Credit risk refers to the risk of...
illiquidity
management failure
counterparty loss
borrower non-payment
Liquidity risk refers to the...
inability of banks to maintain collateral
inability of banks to meet their obligations
difficulty of creating liquidity
poor monitoring of borrowers
When banks create more liquidity, they become more...
illiquid
liquid
solvent
responsible
Bank liquidity creation refers to funding...
assets with wholesale funds
liquid assets with illiquid liabilities
illiquid assets with liquid liabilities
mortgages with equity
The global financial crisis of 2007-2009 emphasised that liquidity risk can be...
a national threat
system-wide
easy to overcome
bank-specific
The ___ committee is usually in charge of
liquidity risk management
collateral value
risk
liquidity
asset-liability
Systemic liquidity risk refers to...
the contagion of liquidity risk from one bank to many
the contagion of liquidity risk to foreign banks
how the banking system manages liquidity risk
liquidity risk of IT systems in banks
Which of the following is NOT a form of wholesale funding?
interbank loans
retail deposits
repurchase agreements
debt securities issued for money market funds
Due to the excess liquidity risk observed during the global financial crisis, regulators introduced the...
CAR and LEQ
BIS and BCBS
LCR and NSFR
MiFID 2
Since the financial crisis, banks' reliance on wholesale funding has...
increased
decreased
stayed the same
Balance sheet management, through strategic ALM, is the process
of managing and optimising ___ to
meet obligations.
assets, liabilities and cash flows
collateral
long-term assets and short-term deposits
capital
