A Disadvantage of Using Asset Management to Manage an FI's

question 67

Multiple Choice

A disadvantage of using asset management to manage an FI's liquidity risk is:

• A)the resulting shrinkage of the FI's balance sheet
• B)the high cost of purchased liabilities
• C)the accessibility of international money markets
• D)loss of flexibility as a result of dependence upon purchased liabilities

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Definitions:

Limited Change

Minimal alterations or adjustments made within an organization, process, or system, often to avoid disruption while pursuing improvement.

Functional Area

Refers to specific categories within a business or organization, such as marketing, finance, or production, each responsible for specific tasks and operations.

Environmentalism

A broad philosophy and social movement regarding concerns for environmental protection and improvement of the health of the environment.

Renewable Energy Market

A sector of the economy that produces and sells energy harnessed from natural resources that are replenished naturally, such as solar, wind, and hydro power.