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54. Risk-based capital ratios measures are associated with which of the following bank risks?             a.        ...

54. Risk-based capital ratios measures are associated with which of the following bank risks?

            a.         interest rate risk

            b.         liquidity risk

            c.         credit risk

            d.         reinvestment risk

55. A match funding of a commercial loan with a large CD is an example of

            a.         a macrohedge

            b.         a microhedge

            c.         increased interest rate risk

            d.         short position

56. The major sources of bank liquidity are        and      ; the major uses are        and       .

            a.         loans and deposits; borrowed funds and selling assets

            b.         borrowed funds and loans; deposits and selling assets

            c.         selling assets and borrowed funds; loans and deposit withdrawals

            d.         borrowed funds and loans; securities and deposit withdrawals.

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Answer #1

54. Risk-based capital ratios measures are associated with which of the following bank risks?

C. Credit Risk as it calculates the risk of default

55. A match funding of a commercial loan with a large CD is an example of

   A. Macrohedge , it is a technique of hedging against same type of risk both instrument bears

56. The major sources of bank liquidity are        and      ; the major uses are        an

D. Borrowed Funds and Loans; Securities and Deposit Withdrawals.

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