easy · FRM Part 2 Liquidity & Treasury Risk
Formula-and-meaning check before application in Liquidity & Treasury Risk.
Within Liquidity & Treasury — Basel III Metrics (LCR & NSFR), which statement correctly describes Liquidity Coverage Ratio?
- available stable funding divided by required stable funding over a one-year horizon
- assets that can be converted to cash readily with little loss under stress
- high-quality liquid assets divided by 30-day net cash outflows
- stressed cash outflows minus capped stressed inflows over the LCR horizon
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