For Banks,liability Management Refers To

question 18

Multiple Choice

For banks,liability management refers to:

• A) managing the liabilities of the banks; that is, the loans.
• B) banks ensuring they have sufficient funds by managing their deposit base.
• C) managing the real assets, the bank buildings.
• D) protecting the loans and other commitments by using derivatives.

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Definitions:

Fine

A monetary penalty imposed by an authority on individuals or entities as punishment for violating laws or regulations.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell, usually upward-sloping.

Variable Costs

Costs that vary directly with the level of production output, such as raw materials and hourly labor expenses.

Output

The quantity of output generated by an individual, device, or sector.