The strategy that banks should buy the reserves they need to cover good-quality loan requests is known as:
A)funds management.
B)asset management.
C)liability management.
D)asset-liability coordinated management.
E)None of the options is correct.

Question

Quizplus · Accepted Answer

Liability management is a strategy where banks actively acquire the necessary funds (or liabilities) to meet their lending needs, rather than primarily focusing on managing their assets.

The Strategy That Banks Should Buy the Reserves They Need