medium · FRM Part 2 Liquidity & Treasury Risk
In the 'Combined Stress' scenario for a Liquidity Stress Test, which of the following is true regarding 'Counterbalancing Capacity'?
- It is always equal to the book value of the bank's equity
- It assumes the central bank will provide unlimited, uncollateralized cash
- It includes all loans that the bank plans to originate in the next year
- It must be marked at stressed market values and apply 'stressed haircuts'
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