1. CSUN National Bank is experiencing an unexpected and large number of requests for funds under existing loan commitments. This is the essence of:
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.
a. fire-sale
b. maximum liquidity
c. deposit drain
d. face value
e. book value
3. A currency swap is:
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.