The basic goal in managing the rate spread between the return on assets and the cost of liabilities.
A) To maintain a negative spread.
B) To maintain a positive spread
C) To maintain profitability.
D) both A and C above

Question

Quizplus · Accepted Answer

The basic goal in managing the rate spread between the return on assets and the cost of liabilities is to maintain a positive spread, as this indicates that the return on assets is higher than the cost of liabilities, contributing to profitability.

The Basic Goal in Managing the Rate Spread Between the Return