How well do you know Liquidity Risk Management Governance?

To implement the liquidity risk management strategy of the bank (correct)

To evaluate the overall risks faced by the bank including credit risk

To manage the operational risk of the bank

To oversee the market risk of the bank

Stock approach looks at the intrinsic liquidity profile of a bank, while flow approach is an indicator of past action

Stock approach looks at the liquidity requirements of different time periods, while flow approach calculates ratios to compare to benchmarks

Stock approach calculates ratios to compare to benchmarks, while flow approach looks at the liquidity requirements of different time periods (correct)

Stock approach is used for on-balance sheet positions, while flow approach is used for off-balance sheet positions

To report to the Board and evaluate overall risks faced by the bank

To identify and define liquidity risk exposures for each major position

To prepare forecasts and recommend action needed to maintain liquidity position (correct)

To set the bank's explicit liquidity risk tolerance