Banks Have Gradually Moved to Liability Management in the Management

question 74

Multiple Choice

Banks have gradually moved to liability management in the management of their balance sheets.Which statement best describes liability management?

• A) The loan portfolio is tailored to match the available deposit base.
• B) The deposit base and other funding sources are managed in order to fund loan and other commitments.
• C) The ratio of debt to equity is managed to meet capital adequacy requirements.
• D) The liability to assets ratio is maintained within central bank standards.

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Definitions:

Linear Model

A statistical approach for modeling the relationship between a scalar response and one or more explanatory variables using straight-line equations.

Labeled Points

Points in a space marked with identifiers or symbols to denote specific positions or values.

Data

Factual information used as a basis for reasoning, discussion, or calculation, often numeric in form.

Model

A simplified representation or framework used to describe or simulate complex systems or phenomena.