WorksheetsVRB Training 2023 _ LR quizz
Total questions: 10
Worksheet time: 5mins
Value of ASF and RSF in calculating NSFR is:
Market value
Carrying value
Fair value
Intrinsic value
Which of the following do NOT include the Small business customer in LCR?
Stable deposit with run-off factor of 5%
Less stable deposit with run-off factor of 10%
Stable deposit with run-off factor of 3%
Which of the following do NOT include in calculating the Cash Inflows for LCR?
Interest payments
Derivative cashflow
Operational deposits
Insurance claims
Which of the following is NOT a characteristic of stable funding sources for the NSFR calculation?
Longer maturity
Low potential for early withdrawal
Higher interest rate
Reliable availability during stress periods
What is the main purpose of a contingency funding plan?
To ensure sufficient liquidity during times of financial stress or disruption
To maximize profits through strategic investments
To optimize cash flow for day-to-day operations
To set up a ‘crisis team’ with clear role and responsibilities
Why is it important for banks to regularly review and update their contingency funding plans?
To align with changing business conditions and market dynamics
To satisfy regulatory requirements and compliance standards
To incorporate lessons learned from previous crises or disruptions
All of the above
Which of the following assets are considered high-quality liquid assets (HQLA) for the purpose of calculating the LCR?
Cash and cash equivalents
Government securities
Highly rated corporate bonds
Gold
Which of the following factors may be considered when designing liquidity stress scenarios?
Sudden deposit withdrawals by customers
Market disruptions or liquidity freezes
Changes in interest rates
All of the above
What is the minimum NSFR requirement set by the Basel III framework for internationally active banks?
40%
50%
65%
100%
How does the NSFR differ from the Liquidity Coverage Ratio (LCR)?
The NSFR focuses on short-term liquidity, while the LCR assesses long-term funding stability.
The NSFR considers both assets and liabilities, while the LCR focuses on cashflows.
The NSFR requires a maximum stable funding ratio of 100%, while the LCR requires a minimum liquidity coverage ratio of 100%.
The NSFR is a globally recognized standard, while the LCR is specific to certain regulatory jurisdictions.
