Valid 2016-FRR Dumps shared by ExamDiscuss.com for Helping Passing 2016-FRR Exam! ExamDiscuss.com now offer the newest 2016-FRR exam dumps, the ExamDiscuss.com 2016-FRR exam questions have been updated and answers have been corrected get the newest ExamDiscuss.com 2016-FRR dumps with Test Engine here:
Asset and liability management is typically concerned with all of the following activities: I. Maintaining the desired liquidity structure of the bank. II. Managing the factors affecting the structure and composition of a bank's balance sheet. III. Effectively transferring the interest rate risk in the banking book to the investment bank at a fair transfer price. IV. Focusing on the circumstances impacting the stability of income the bank generates over time.
Correct Answer: D
Asset and liability management (ALM) in banks is concerned with several key activities: * Maintaining the desired liquidity structure of the bank (I): Ensuring that the bank has enough liquid assets to meet its short-term obligations. * Managing the factors affecting the structure and composition of a bank's balance sheet (II): This includes managing the mix of assets and liabilities to optimize returns and minimize risks. * Focusing on the circumstances impacting the stability of income the bank generates over time (IV): Ensuring that the bank's income is stable and sustainable by managing interest rate risk, credit risk, and other factors that could affect profitability. References: No specific reference found in the document for this question. The provided answer is based on standard ALM practices in banking.