The ultimate goal of liability management is to gain control over a financial institution's sources of funds.

Question

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The ultimate goal of liability management is to gain control over a financial institution's sources of funds, with the aim of improving profitability, managing risk, and ensuring liquidity. By managing liabilities, financial institutions can optimize their funding mix, reduce funding costs, and mitigate interest rate sensitivity or liquidity risks. Therefore, liability management is a crucial function in the management of banks and other financial institutions.

The Ultimate Goal of Liability Management Is to Gain Control