1. The rate of return on fixed assets is normally assumed to be ____ the rate of return on current assets (especially cash and marketable securities).

less than

greater than

equal to

none of the above

2. Suppose Bank of Hope (BOH) has total assets worth $200 million, of which $60 million is considered as high-quality liquid assets. Assume BOH’s anticipated net outgoing cash flow per day is estimated as $3 million. What is BOH’s liquidity coverage ratio?

66.7%

75%

82.5%

105.3%

125%