Which of the following elements should be included in an FI's liquidity management strategy?
A)Clearly defined managerial responsibilities and controls.
B)A formal plan to minimise excess liquidity.
C)An agreement to predominantly focus on stored liquidity management.
D)Clearly defined managerial responsibilities and controls and a formal plan to minimise excess liquidity only.

Question

Quizplus · Accepted Answer

Liquidity management strategies in financial institutions (FIs) should include clearly defined managerial responsibilities and controls to ensure effective oversight and management of liquidity risks. This involves establishing clear lines of responsibility and control mechanisms to monitor and manage liquidity positions.

Which of the Following Elements Should Be Included in an FI's