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Financial Risk and Regulation (FRR) Series

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2016-FRR PDF

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$35 Last Update April 28, 2024 Total Questions : 342

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Financial Risk and Regulation (FRR) Series Questions and Answers

Questions 1

Which of the following statements depicts a difference between funding liquidity risks and trading liquidity risks?

Options:

A.  

Funding liquidity risks are associated with how fast prices move in the market while trading liquidity risks originate out of bank trades.

B.  

Funding liquidity risks are concerned with the ability of the bank to fund deposits withdrawals while trading liquidity risks are concerned with the change in bid-offer spreads of asset values.

C.  

Funding liquidity risks are short term risks while trading liquidity risks are longer term risks.

D.  

Funding liquidity risks are associated only with the bank assets while trading liquidity risks are associated with both assets and liabilities of the bank.