Financial firms devote greater attention to opening up new sources of funding and monitoring the mix and cost of their deposit and non-deposit liabilities under the _______________________ strategy.
A)asset management
B)liabilities management
C)interest-sensitive gap management
D)weighted gap management
E)duration gap management

Question

Quizplus · Accepted Answer

Liabilities management strategy involves managing the mix and cost of deposit and non-deposit liabilities. This strategy helps financial firms to open up new sources of funding and also monitor the cost and mix of their liabilities.

Financial Firms Devote Greater Attention to Opening Up New Sources