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NEW QUESTION: 1


Answer:
Explanation:

Explanation

NEW QUESTION: 2
Which of the following statements is true?
A. Only the drawn portions of credit facilities extended to clients by a bank count towards its liquidity exposure
B. Under times of liquidity stress, both prepayments of loans extended and expected withdrawals from on-demand deposits will decrease
C. For an issuer of life insurance policies, longevity risk can lead to reserves falling short of payments due
D. Deterioration in the balance sheets of key counterparties is a concern for a liquidity manager even though it may not immediately affect a firm
Answer: D
Explanation:
Explanation
Deterioration in the balance sheets of key counterparties is a concern for a liquidity manager even though it may not immediately affect a firm, and this is true because counterparty failures may lead to liquidity shortfalls for an institution for no fault of its own. It is important for a liquidity risk manager to watch the health of key counterparties where exposure is concentrated and take timely steps to reduce it should the health deteriorate.
Under times of liquidity stress, prepayments of loans extended will decline while withdrawals of demand deposits are likely to increase. Both will not decrease, and therefore Choice 'b' is incorrect.
A bank is exposed to the undrawn portions of a line of credit extended to a borrower as the borrower, with superior information on its own finances, is likely to draw upon undrawn lines of credit thereby increasing the bank's exposure. Therefore Choice 'a' is incorrect. Generally, a portion of the undrawn part is counted towards a liquidity outflow.
Longevity risk is the risk facing sellers of annuities that their clients will outlive their assumptions on their length of life, while mortality risk is the downside risk for an insurer that clients will die sooner than expected causing the reserves to fall short of what is needed. Therefore Choice 'd' is not correct as the opposite is true.

NEW QUESTION: 3
A client is admitted to the labor room. She is dilated 4 cm. She is placed on electric fetal monitoring. Which of the following observations necessitates notifying the physician?
A. Beat-to-beat variability between contractions
B. Fetal heart decelerations during a contraction
C. Contractions every 2 minutes, lasting 100 seconds
D. Fetal heart decelerations at the beginning of contractions
Answer: C
Explanation:
Explanation
(A) These are tetanic in nature and can cause rupture of the uterus. (B) The FHR decreases during contractions owing to vasoconstriction and should recover after the contraction. (C) Beat-to-beat variability is a normal finding and demonstrates fetal well-being. (D) The FHR may decrease at the beginning of a contraction owing to head compression.