Which of the following regarding the (commitments to lend / assets) ratio is true?

A low ratio signifies high liquidity risk.

It is good for a bank to have some loan commitments and not keep this ratio at zero because they can make fee income.

A low ratio means a bank would be subject to a lot of drawdowns by businesses which in turn reduces their cash.

A high ratio is preferred because during economic downturns businesses would drawdown on their loan commitments.

None of the above.