20.3.1. Liquidity funding risk refers to the firm's ability to meet its cash needs. About liquidity funding risk, which of the following statements is TRUE?

a) Wholesale deposits are the most stable source of funding b) A lack of confidence can contribute to an institution's liquidity funding problems

c) A solvent firm cannot experience a liquidity funding problem; i.e., only an insolvent firm can experience a liquidity problem d) Case studies such as Northern Rock and Ashanti Goldfields demonstrate that a hedged position is the best protection against liquidity funding problems

20.3.2 Which of the following Basel liquidity ratios includes regulatory capital in the numerator?

a) Return on equity (ROE) b) Net interest income (NII)

c) Liquidity coverage ratio (LCR)

d) Net stable funding ratio (NSFR)

20.3.3. Peter's startup company has built a new exchange platform that enables participants to trade derivatives on certain cryptocurrencies. Peter knows that market participants have a strong preference for continuous liquidity, and conversely, participants will avoid a market that suffers a lack of liquidity. Peter is preparing a marketing brochure to promote the new exchange If his goal is to promote the exchange's well-functioning liquidity features, which of the following feature is most likely to be promoted in the brochure; i.e., which feature contributes to a stable market with respect to liquidity?

a) Stop loss rules b) Trend trading

c) Liquidity black hole

d) Negative feedback traders

20.8.1. Which of the following is a USE of intraday liquidity?

a) Income funds flow b) Term repo (as the repo seller)

c) Funding of nostro accounts (at correspondent bank outside home market) d) Intraday credit (Federal Reserve unsecured committed line of credit, LOC)

20.8.2. Venkat' explains that "all risk management frameworks start with a governance structure. that defines the roles and responsibilities of various bank employees and committeesi overseeing risk-related activities," and effective governance includes the oversight of intraday liquidity risk. In regard to the governance structure of intraday liquidity risk management which of the following statements is TRUE?

a) Intraday liquidity risk should be accepted as a cost of doing business

b) Roles and responsibilities should be defined within the eight lines (.e., two times defense model c) PCS Systems should only be a source of funds, if PCS becomes a use of funds, then a

four) of yellow flag should be triggered d) Intraday liquidity risk should be incorporated in the risk taxonomy and is a component of risk self-assessment including settlement risks.

20.8.3. Each of the following is a measure for quantifying and/or monitoring risk levels EXCEPT

which is a measure for understanding intraday flows?

a) Total payments

b) Client intraday credit usage c) Intraday credit relative to tier 1 capital

d) Daily maximum intraday liquidity usage

Please answer all the questions... if you can't please skip..(7,44)