- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 13. Analysis of Financial Institutions
- Subject 2. Analyzing a Bank: The CAMELS approach
CFA Practice Question
Identify liquidity-monitoring tools described in Basel III:
II. ratio of non-interest expenditures to total asset
III. capital adequacy ratio
IV. contractual maturity mismatch
V. asset under management (AUM)
I. concentration of funding
II. ratio of non-interest expenditures to total asset
III. capital adequacy ratio
IV. contractual maturity mismatch
V. asset under management (AUM)
Correct Answer: I and IV
A financial institution must always be liquid to meet depositors' and creditors' demand to maintain public confidence.
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