Please answer the following questions correctly. Thank you 1. CSUN National Bank

ID: 2805499 • Letter: P

Question

Please answer the following questions correctly. Thank you

1. CSUN National Bank is experiencing an unexpected and large number of requests for funds under existing loan commitments. This is the essence of:

Select one:

a. asset side liquidity risk

b. credit risk

c. net deposit drain

d.vliability side liquidity risk

e.( c and d)

2. If a bank has to raise liquidity by selling off loans on short notice, the prices on such loan sales would be termed __________ prices.

Select one:

a. fire-sale

b. maximum liquidity

c. deposit drain

d. face value

e. book value

3. A currency swap is:

Select one:

a. an exchange of floating-rate payments for fixed-rate payments.

b. an exchange of one currency for another currency in the spot exchange market.

c. an exchange of interest payments denominated in one currency for interest payments denominated in another currency.

d. an exchange of debt covenant terms in one country for those in another country.

1. asset side liquidity risk

2. fire sale

3. c. an exchange of interest payments denominated in one currency for interest payments denominated in another currency.