Liability management is considered to be an interest-sensitive approach to raising bank funds.

Question

Quizplus · Accepted Answer

Liability management involves the management of a bank's funding sources, such as deposits and borrowings, to ensure that the bank can meet its obligations and maximize its profitability, taking into account the interest rate environment. It is considered interest-sensitive because it focuses on managing the bank's liabilities in a way that minimizes interest rate risk.

Liability Management Is Considered to Be an Interest-Sensitive Approach to Raising