Explanation:
Daily maximum intraday liquidity usage and client intraday credit usage are key tools for quantifying and monitoring intraday liquidity risk levels. Monitoring the maximum intraday liquidity usage allows a bank to determine its peak intraday funding needs. Additionally, measuring client intraday credit usage helps the bank monitor the intraday credit extended to its clients and correspondent banking customers, ensuring that such exposures remain within acceptable limits and are adequately supported by available liquidity.
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Q.3911 FRM students were discussing the measures for quantifying and monitoring risk levels. They finally agreed to write down every two measures they think are accurate. Which of the following states the most accurate measures?
A
Daily maximum intraday liquidity usage and client intraday credit usage
B
Client intraday credit usage and total bank intraday credit lines available and usage
C
Total bank intraday credit lines available and usage and total intraday credit lines to clients and counterparties.
D
Time-sensitive obligations like settlement positions and payment throughput
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