Which of the following statements is NOT TRUE in the context of the liquidity index? a. The difference between immediate fire-sale asset prices and fair market value prices can be used to measure liquidity position of a financial institution b. The greater the difference between immediate fire-sale asset prices and fair market value prices, the less liquid is the FI's portfolio of assets. c. The greater the difference between immediate fire-sale asset prices and fair market value prices, the more liquid is the financial institution’s portfolio of assets. d. The smaller the difference between immediate fire-sale asset prices and fair market value prices, the more liquid is the financial institution’s portfolio of assets. e. None of the listed options are correct
Q 7. Which of the following statements is NOT TRUE in the context of the liquidity index?
a. The difference between immediate fire-sale asset prices and fair market value prices can be used to measure liquidity position of a financial institution
b. The greater the difference between immediate fire-sale asset prices and fair market value prices, the less liquid is the FI's portfolio of assets.
c. The greater the difference between immediate fire-sale asset prices and fair market value prices, the more liquid is the financial institution’s portfolio of assets.
d. The smaller the difference between immediate fire-sale asset prices and fair market value prices, the more liquid is the financial institution’s portfolio of assets.
e. None of the listed options are correct
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