1. Which of the following is NOT included as high-quality liquid assets when computing a liquidity coverage ratio?

Sovereign debt.

Treasury Securities.

Government guaranteed mortgage-backed securities.

Central bank reserves.

All of the other listed instruments are high quality liquid assets

2. The Bank for International Settlements has stated that banks should carry extra capital as a cushion against operational risks.

True

False

3. New retail products and services based heavily on technology often are risky because of the high usage rate necessary to make them positive net present value projects.

True

False

4. The increased use of technology may have positive and negative effects on the perceived service quality provided to retail customers.

True

False