RAC Flashcards

1
Q

How RAC link to POLG?

A

determine max POLG level for nxt yr

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2
Q

What was old RAC method?

A

liquidity not fall less than minimum liquidity requirement over 40yr period

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3
Q

What is new RAC method?

A

diff: financing capacity (ST res avail) v commitment capacity (strategic MT LT based capital adeq)

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4
Q

2 inputs to RAC?

A

Target Repl, and POLG scenario, RAC is yrly est

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