What Is the Purpose of the Liquidity Coverage Ratio

Multiple Choice

What is the purpose of the Liquidity Coverage Ratio?

A) to mitigate market replacement risk across markets
B) to eliminate funding mismatches by establishing a minimum acceptable amount of stable funding
C) to ensure that banks have enough high-quality liquid assets to survive a 30-day period of acute market stress
D) to minimize duration risk on a bank's assets over a one-year horizon