a) What is the difference between the marginal default probability and the cumulative default probability?
b) How should the posting of collateral by a borrower affect the risk premium on a loan?
a) List two benefits and two costs of using a) purchased liquidity management and b) stored liquidity management to meet a deposit drain.
b) What are the three major sources of DI liquidity? What are the two major uses?
c) What are the differences between CET1, Tier I, and Tier II capital?