Multiple Choice
The BIS recommends that depository institutions do which of the following to realistically measure liquidity risk?
I. Construct a maturity ladder of funding requirements over both the short and long run.
II. Conduct scenario analyses of the bank's implied liquidity position under different bank and economic conditions.
III. Always keep the loan-to-deposit ratio less than one.
A) I only
B) II only
C) I and II only
D) II and III only
E) I,II,and III
Correct Answer:

Verified
Correct Answer:
Verified
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