Which of the following is a function of asset and liability management (ALM) ?
A) coordinated limit management of a financial institution's credit portfolio
B) running a matched trading book
C) monitoring credit quality of assets and establishing a early warning system
D) managing the financial risk of the bank by protecting it from the adverse effects of changing interest rates
Correct Answer:
Verified
Q39: You quote a customer a spot cable
Q40: Basis risk on a futures contract is:
A)
Q41: Supervisors would generally consider interest rate risk
Q42: The vega of an option is:
A) The
Q43: What is a 'duration gap'?
A) the average
Q45: Which one of the following statements is
Q46: The exercise price in an option contract
Q47: An option is:
A) The right to buy
Q48: A corporate wishing to hedge the interest
Q49: The market is quoting: 6-month (182-day) CAD
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