Post Utme Lead City University 2024 Commerce Question 37

Practice objective / multiple choice question 37 from the 2024 Post Utme Lead City University Commerce examination.

Post Utme Lead City University 2024 Commerce Objective / Multiple Choice
Question 37 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 credit risk management in a bank's risk management strategy?

Answer Options

Correct Answer A. Credit risk management is responsible for managing a bank's credit risk, by ensuring that the bank's assets are adequately collateralized.
B. Credit risk management is responsible for managing a bank's market risk, by ensuring that the bank's assets are diversified across different asset classes.
C. Credit risk 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. Credit risk management is responsible for managing a bank's operational risk, by ensuring that the bank's operations are efficient and effective.
Correct Answer
A
Correct Option:
Credit risk management is responsible for managing a bank's credit risk, by ensuring that the bank's assets are adequately collateralized.

About This Question

This is Post Utme Lead City University 2024 Commerce Question 37. It is one of the objective questions from the 2024 Post Utme Lead City University Commerce examination.

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