Which of the following statements is correct?
A) With liquidity transfer pricing (LTP) banks attribute the costs, benefits and risks of liquidity to respective business units within a bank
B) With liquidity transfer pricing (LTP) banks are monitoring and diversifying their funding base
C) With liquidity transfer pricing (LTP) banks are agreeing with external liquidity providers on the fair market price of funds
D) Liquidity transfer pricing charges providers of funds for the cost of liquidity and users of funds for the benefit of liquidity

Question

Quizplus · Accepted Answer

With liquidity transfer pricing (LTP) banks attribute the costs, benefits, and risks of liquidity to respective business units within a bank. The other options are incorrect as they do not accurately describe liquidity transfer pricing.

Which of the Following Statements Is Correct