Bank Liquidity Creation Quiz
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Questions and Answers

Which of the following is a measure of liquidity creation?

  • Illiquid assets
  • Total liquid assets (correct)
  • Weighted assets
  • Balance sheet
  • What is the formula for calculating liquidity creation?

  • 𝑇𝐴 = 𝜆𝑎 𝜆𝑙
  • 𝜆𝐴 = 𝜆𝐴 = 𝜆𝐿 = 𝜆𝐿
  • σ 𝜆𝑎 × 𝐴 + σ 𝜆𝑙 × 𝐿 𝐿𝐶 = 𝑇𝐴
  • 𝑇𝐴 = 𝜆𝑎 × 𝐴 + 𝜆𝑙 × 𝐿 (correct)
  • Which of the following is a component of liquidity creation?

  • Illiquid assets (correct)
  • Balance sheet
  • Total liquid assets
  • Weighted assets
  • What is the weight assigned to total liquid assets in the calculation of liquidity creation?

    <p>-0.5</p> Signup and view all the answers

    What is the weight assigned to illiquid assets in the calculation of liquidity creation?

    <p>0.5</p> Signup and view all the answers

    What is the weight assigned to the First Class Test in the overall assessment?

    <p>40%</p> Signup and view all the answers

    When are the computer lab-based tutorials scheduled?

    <p>Weeks 2-10</p> Signup and view all the answers

    What is the main textbook for this module?

    <p>Introductory Econometrics for Finance (4th Edition)</p> Signup and view all the answers

    Which software package is preferred for this module?

    <p>EViews</p> Signup and view all the answers

    When is the Group Coursework scheduled?

    <p>Week 14</p> Signup and view all the answers

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