Post Utme Lead City University 2024 Commerce Question 33

Practice objective / multiple choice question 33 from the 2024 Post Utme Lead City University Commerce examination.

Post Utme Lead City University 2024 Commerce Objective / Multiple Choice
Question 33 POST_UTME_LEAD_CITY_UNIVERSITY • 2024 • COMMERCE • objective

A bank's risk management strategy involves the following components: asset liability management, credit risk management, and market risk management. Which of the following is a correct statement regarding the role of asset liability management in a bank's risk management strategy?

Answer Options

A. Asset liability management is responsible for managing a bank's credit risk, by ensuring that the bank's assets are adequately collateralized.
B. Asset liability management is responsible for managing a bank's market risk, by ensuring that the bank's assets are diversified across different asset classes.
Correct Answer C. Asset liability management is responsible for managing a bank's liquidity risk, by ensuring that the bank has sufficient liquid assets to meet its short-term obligations.
D. Asset liability management is responsible for managing a bank's operational risk, by ensuring that the bank's operations are efficient and effective.
Correct Answer
C
Correct Option:
Asset liability management is responsible for managing a bank's liquidity risk, by ensuring that the bank has sufficient liquid assets to meet its short-term obligations.

About This Question

This is Post Utme Lead City University 2024 Commerce Question 33. It is one of the objective questions from the 2024 Post Utme Lead City University Commerce examination.

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