Question

A commercial bank’s “Liquidity Coverage Ratio (LCR)” is designed to ensure that:

• A. The bank holds enough capital to absorb losses
• B. The bank has enough high-quality liquid assets to survive a 30-day stress scenario
• C. The bank maintains minimum cash reserves as per RBI guidelines
• D. The bank complies with priority sector lending norms

Answer 1

Answer:

B. The bank has enough high-quality liquid assets to survive a 30-day stress scenario

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