Ques25:

Which of the following statements is/are FALSE concerning liquidity risk measures?

Select one or more:

a. The liquidity index should be a number that is either greater than one or less than zero.

b. The greater the difference between fair market prices and fire-sale prices for assets, the less liquid the DI's portfolio of assets.

c. The net stable funds ratio (NSFR) is a longer-term measure than the liquidity coverage ratio (LCR).

d. When computing the liquidity coverage ratio, high-quality liquid assets (HQLAs) are divided into two levels.