Multiple Choice
Which of the following can create liquidity risk for a life insurer?
I. Unexpectedly high number of policy surrenders
II. Unexpectedly low number of new policies sold
III. Unexpectedly high insurance claims filed by policyholders
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
Q33: Runs on insurance firms are more likely
Q34: An increasingly positive financing gap can indicate
Q35: A DI has highly liquid assets if
Q36: The financing gap is defined as average
Q38: Explain the relationship between each of the
Q39: The two main reasons why runs on
Q40: The greater the _ ratio,the more liquid
Q41: A bank meets a deposit withdrawal with
Q42: Describe the major components of a liquidity
Q51: A bank's financing gap is calculated as