The Most Important Task of a Bank's Asset-Liability Committee Is

question 43

Multiple Choice

The most important task of a bank's asset-liability committee is to

• A)determine variable interest rates.
• B)determine a bank's basic borrowing and lending strategy.
• C)propose new possible assets.
• D)determine the necessary cash-flow for high profit margins.

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Definitions:

Other Receivable

Amounts owed to a company by entities other than customers, such as tax refunds, advances to employees, or other companies.

Employee Advance

A prepayment to employees by a company, often covering travel expenses or payment before the regular payroll date.

Notes Receivable

Claims held by a party for payments due from debtors, usually evidenced by a formal instrument of indebtedness such as a promissory note.

Allowance Method

An accounting approach to managing bad debts by estimating and recording uncollectable accounts receivable as an expense before the debts are known to be uncollectable.