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Asset/Liability (ALM) Is a Short and Long Term Planning Tool

Question 206

Multiple Choice

Asset/Liability (ALM) is a short and long term planning tool designed to maximize earnings. ALM tries to create optimal risk/reward decisions and focuses on creating prices that achieve spread. A sound ALM policy must manage following types of risks EXCEPT:


A) Credit Risk
B) Control Risk
C) Liquidity Risk
D) Capital Risk

Correct Answer:

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