Question: Not sure if I got these true or false questions correct for practice paper PART A-True False questions (20%) Answer all 20 questions in Part

Not sure if I got these true or false questions correct for practice paper

Not sure if I got these true or false questions correct for

PART A-True False questions (20%) Answer all 20 questions in Part A Mark your answers on the separate answer sheet provided by selecting "A" for TRUE or 'Bfor FALSE, Use the final page of this exam paper for rough working ALTF-Basel Il liquidity reforms introduced the need for adequate high-quality liquid assets that meet the liquidity coverage ratio (LCR). A2. Tor Secondary or buffer reserves are non-reserve assets that can be quickly turned into cash or used to provide collateral for repurchase agreements and other bank borrowing. A3. To The net stable funding ratio requirement promotes a more diversified, stable funding base that ensures that short-term assets are funded by stable liabilities. A Dorf-Funding costs generally are positively related to the period of time the liability remains on the balance sheet. AS. for F- Because retail CDs have fixed maturities, Fl managers always should have perfect information regarding the liquidity characteristics (such as the scheduling of interest and principal payments). A6. Or - Rescheduling of international loans is changing the contractual terms of a loan, such as the maturity and interest payments. A7. Dort F - The Euromoney Country Risk Index is based on the spread in the Euromarket of the required interest rate on a country's debt over the LIBOR. AB. TO Built into foreign loan multi-year restructuring agreements (MYRAS) are option and guarantee features that allow the lender and buyer (borrower) to choose the currency for repayment of interest and principal. A9. Por F-Currency swaps are used to hedge against exchange rate risk from mismatched currencies on assets and liabilities. Alor-Anet short position exposes an Fl to the risk that the foreign currency could rise in value against its domestic currency. A11 for F-As compared to Standby Letters of Credit (SLCs), Letters of Credit (LCs) typically are used to cover contingencies that potentially are more severe and which may not be trade related A12(T OF F-Standby letters of credit can be seen as direct competitors to loan commitments. 2

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