Question: Can you please explain why b) and c) is FALSE? A13. Which of the following statements about liquidity and solvency is/ are true? (a) The

Can you please explain why b) and c) is FALSE?

A13. Which of the following statements about liquidity and solvency is/ are true? (a) The relevant items on the balance sheet to assess solvency are total liabilities and total assets. T a] Allowing banks to borrow from the central bank at a penalty rate of interest can deal with a bank's solvency but not a liquidity problem. 0 [Q 11fl a bank admits that rlnany of its loans are 'non erforming' and unlikely to be repaid, . ' ' it i i i i . t is increases s ab t es T T

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