Multiple Choice
Which of the following would be an example of liquidity risk?
A) A bank teller manages to steal $250,000 over a period of several months.
B) An out-of-date computer system causes the bank to lose $750,000.
C) A bank is forced to sell $1,000,000 in loans,at a loss,in order to meet the needs of depositors.
D) A $500,000 that loan the bank has made has been deemed uncollectible.
E) None of the examples are of liquidity risk.
Correct Answer:
Verified
Correct Answer:
Verified
Q83: VaR models are most successful in assessing
Q84: Core capital such as common stock and
Q85: A bank has $100 million in assets
Q86: The Michelson Bank of Stetson,wants to protect
Q87: VaR models measure the market risk and
Q89: One defense against risk for a bank
Q90: A bank that is 'well-capitalized':<br>A)faces no significant
Q91: A bank that is 'critically undercapitalized':<br>A)faces no
Q92: The largest component of capital among commercial
Q93: Equity notes are considered to be part