Question

2 points QUESTION 3 You are the banks liquidity manager. What should you do if the liquidation cost of highly non-liquid assets increases and why? Answer this question by filling in the blanks. Please use the suitable word provided in the round brackets. The risk of illiquidity (increased/decreased/did not change) The cost of liquidity to (increased/decreased/did not change) Therefore it makes sense (increase/decrease/ maintain) the ESF buffer. As a result your bank will provide (more/less/the same) liquidity transformation for society 2 QUESTION 4 Click Save and Submit to save and submit, Click Save All Ansuers to save al Save All Answers
1 0
Add a comment Improve this question Transcribed image text
Answer #1

At the point when the otained tiquidity winds up less ex pensive, the acte of interest is lower. Tn this way, the possbliy co ist of being kiquidhy has veducedt. The aiske of iquidiłky decreases At the point wthen liquidity becomes cheapeo deters the cost of liquidity since illiquid assetc can be solt at a lower paice since theve is plenty of liq icty it makes Sense to dectease the Esf buffeo to manage tiquidiky As a vesult the bank coill paovide less tiqcidrt hansfamation -fos the socieły

Add a comment
Know the answer?
Add Answer to:
2 points QUESTION 3 You are the bank's liquidity manager. What should you do if the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • You are the bank's liquidity manager. What should you do if the liquidation cost of highly...

    You are the bank's liquidity manager. What should you do if the liquidation cost of highly non-liquid assets increases and why? Answer this question by filling in the blanks. Please use the suitable word provided in the round brackets. The risk of illiquidity  (increased/decreased/did not change). The cost of illiquidity  (increased/decreased/did not change). Therefore it makes sense to  (increase/decrease/ maintain) the ESF buffer. As a result your bank will provide  (more/less/the same) liquidity transformation for society.

  • You are the bank's liquidity manager. What should you do if the variability of deposit inflows...

    You are the bank's liquidity manager. What should you do if the variability of deposit inflows and outflows increases and why? Answer this question by filling in the blanks. Please use the suitable word provided in the round brackets. The risk of illiquidity  (increased/decreased/did not change). The cost of illiquidity  (increased/decreased/did not change). Therefore it makes sense to  (increase/decrease/ maintain) the ESF buffer. As a result your bank will provide  (more/less/the same) liquidity transformation for society.

  • You are the bank's liquidity manager. What should you do if the yield on non-liquid assets...

    You are the bank's liquidity manager. What should you do if the yield on non-liquid assets increases and why? Answer this question by filling in the blanks. Please use the suitable word provided in the round brackets. The risk of illiquidity  (increased/decreased/did not change). The cost of illiquidity  (increased/decreased/did not change). Therefore it makes sense to  (increase/decrease/ maintain) the ESF buffer. As a result your bank will provide  (more/less/the same) liquidity transformation for society.

  • 2 p QUESTION 2 You are the bank's liquidity manager. What should you do if the...

    2 p QUESTION 2 You are the bank's liquidity manager. What should you do if the yield on non-liquid assets increases and why? Answer this question by filling in the blanks. Please use the suitable word provided in the round brackets. The risk of iliquidity liquidity (increased/decreased/did not change). The cost of (increased/decreased/did not change). Therefore it makes sense to provide (increase/decrease/ maintain) the ESF buffer. As a result your bank will (more/less/the same) liquidity transformation for society Click Save...

  • QUESTION 5 You are the bank's liquidity manager. What should you do if the RBA increased...

    QUESTION 5 You are the bank's liquidity manager. What should you do if the RBA increased the cash rate (overnight interbank borrowing) and why? Answer this question by filling in the blanks. Please use the suitable word provided in the round brackets The risk of illiquidity (increased/decreased/did not change). The cost of illiquidity (increased/decreased/did not change). Therefore it makes sense to (increase/decrease/ maintain) the ESF buffer. As a result your bank will be willing to create (more/less/the same) loans and deposits.

  • You are the bank's liquidity manager. What should you do if the RBA increased the cash...

    You are the bank's liquidity manager. What should you do if the RBA increased the cash rate (overnight interbank borrowing) and why? Answer this question by filling in the blanks. Please use the suitable word provided in the round brackets. The risk of illiquidity  (increased/decreased/did not change). The cost of illiquidity  (increased/decreased/did not change). Therefore it makes sense to  (increase/decrease/ maintain) the ESF buffer. As a result your bank will be willing to create  (more/less/the same) loans and deposits.

  • Contains ncrease Correct Answers for: D Evaluation Method Correct Answer Case Sensitivity Exact Match less ion...

    Contains ncrease Correct Answers for: D Evaluation Method Correct Answer Case Sensitivity Exact Match less ion 2 1 out of 2 points You are the bank's liquidity manager. What should you do if the yield on non-liquid assets increases and why? Answer this question by filling in the blanks. Please use the suitable word provided in the round brackets The risk of iliquidity [A] (increased/decreased/did not change) The cost of illiquidity [B] (increased/decreased/did not chande Diemetbre tmaks nso e maintan...

  • OOO QUESTION 22 2 points What methods do economists use to put specific dollar values on lives lost? Benefit-cost a...

    OOO QUESTION 22 2 points What methods do economists use to put specific dollar values on lives lost? Benefit-cost analysis Pigovian taxes Risk-fatality trade-offs Externalities QUESTION 23 2 points What economic metrics do economists use to measure climate change? Social Cost of Carbon Present Value damages from climate change as a percent of GDP Net losses in GDP from damages minus abatement All of the above QUESTION 24 2 points The social discount rate is not the same as the...

  • Can you solve the question CE 4-3. do not need to do #g & h. CE4-2....

    Can you solve the question CE 4-3. do not need to do #g & h. CE4-2. Create a new workbook and take the following actions: a. Name and save your workbook using your own choosing b. Enter the value This is the content of cell C7 into cell C7. a name of c. Use F2 to change the value in cell C7 to This is part of the content of cell C7 d. Add the value January to cells B2...

  • M Search resuts x Deadiine 1: Janu XI Take Test Unit Test 1-201 981 x aa...

    M Search resuts x Deadiine 1: Janu XI Take Test Unit Test 1-201 981 x aa American 1125061 1&co QUESTION 1 What event led the Founders to realize that the Articles of Confederation were inadequate? O a slave revolt in South Carolina O the Boston Massacre O Shays Rebelilion O the Rhode Island Revolution QUESTION 2 According to Madison, what must be made to counteract ambition ? o mitary power O political authority O public opinion O ambition QUESTION 3...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT