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IIA-CFSA · Question #185

Banks should develop policies related to ALM, including specific guidelines regarding risk/reward tradeoffs. The goal is to manage risks while achieving acceptable returns on investments. In…

The correct answer is C. Cash flows and liabilities by reviewing historical reports, ratio reports, balance sheet, the income. See the full explanation below for the reasoning.

Question

Banks should develop policies related to ALM, including specific guidelines regarding risk/reward tradeoffs. The goal is to manage risks while achieving acceptable returns on investments. In developing these policies bank officials analyze:

Options

  • ACash flows
  • BLiabilities
  • CCash flows and liabilities by reviewing historical reports, ratio reports, balance sheet, the income
  • DLiabilities by reviewing historical reports, ratio reports, balance sheet, the income statement,

How the community answered

(46 responses)
  • A
    2% (1)
  • B
    15% (7)
  • C
    74% (34)
  • D
    9% (4)

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