Which of the Following Statements About the Liquidity Coverage Ratio

Multiple Choice

Which of the following statements about the Liquidity Coverage Ratio is correct?

A) The LCR is a measure to ensure that the reserve of high quality liquid assets is sufficient to cover short term demand for liquidity in a stress situation.
B) the ratio (cash outflow in a 30-day stress period divided by high quality liquid assets) has to be greater than 100%.
C) Covered bonds are class 1 assets.
D) Obligations issued by central banks or government agencies are class 2 assets.