Asset/Liability (ALM) Is a Short and Long Term Planning Tool

question 145

Multiple Choice

Asset/Liability (ALM) is a short and long term planning tool designed to maximize earnings. ALM tries to create optimal risk/reward decisions and focuses on creating prices that achieve spread. A sound ALM policy must manage following types of risks EXCEPT:

• A) Credit Risk
• B) Control Risk
• C) Liquidity Risk
• D) Capital Risk

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