What Is Funds Transfer Pricing in the ALM Process

question 300

Multiple Choice

What is Funds Transfer Pricing in the ALM process?

• A) A maturity analysis of a bank's interest-bearing assets and interest-bearing liabilities.
• B) A method used to measure how much each source of funding is contributing to overall profitability.
• C) A calculation of the spread between the duration of the interest-bearing assets and the interestbearing liabilities.
• D) The evaluation and management of the gap between a bank's volume of loans and deposits.

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Definitions:

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The process by which individuals convey information, ideas, or feelings to one another through speech, writing, or other forms of expression.

Claim Response

The reaction or reply to a statement or assertion, particularly in the context of addressing a complaint or issue.

Personal Responsibility

The obligation to take ownership of one's actions and their consequences, acknowledging the personal role in outcomes.