GARP Financial Risk and Regulation (FRR) Series 2016-FRR Question # 16 Topic 2 Discussion

GARP Financial Risk and Regulation (FRR) Series 2016-FRR Question # 16 Topic 2 Discussion

2016-FRR Exam Topic 2 Question 16 Discussion:
Question #: 16
Topic #: 2

Which among the following are shortfalls of the static liquidity ladder model?

I. The static model gives a liquidity estimate only after the bank faces the liquidity problem.

II. The static model can only make projections over a few days.

III. The static model does not incorporate uncertainty in the analysis.


A.

I, II


B.

I, III


C.

I, II, III


D.

III


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