QUESTION 43

Which of the following banks would normally be considered "systemically important?"

		Deutsche Bank
		HSBC
		JPMorgan Chase
		Royal Bank of Scotland
		All of the above
		None of the above

1 points

QUESTION 44

Under Basel III, which of the following could be considered appropriate for measuring a financial institution's liquidity coverage ratio?

		Short-term liquidity assets divided by average cash flow
		Short-term liquidity assets divided by long-term debt
		Long-term loans divided by average cash flow
		Long-term loans divided by long-term reliable liability and equity
		None of the above

1 points

QUESTION 45

Under Basel III, which of the following could be considered appropriate for measuring Net Stable Funding Ratio?

		Short-term liquidity assets divided by average cash flow
		Short-term liquidity assets divided by long-term debt
		Long-term loans divided by average cash flow
		Long-term loans divided by long-term reliable liability and equity
		None of the above

1 points

QUESTION 46

The liquidity problem of banks can be explained by

		The size of delinquent loans
		Maintaining a common equity ratio below the regulatory standard
		Insufficient cash and near cash assets to meet deposit customer payout requests
		None of the above

1 points

QUESTION 47

The third standard of Basel III calls for a Countercyclical Capital Buffer, which is up to 2.5% of Core Tier 1 capital. This is required during periods of high credit growth. The motivation behind this provision is as follows:

		Banking crises have been found to often follow periods of high credit growth
		Banking crises have been found to often follow periods of slow credit growth
		Banking crises have been found to often follow periods of high interest rates and high inflation
		Banking crises have been found to often follow periods of liquidity problems for banks
		None of the above