Banks have gradually moved to liability management in the management of their balance sheets. Which statement best describes liability management?:

Question

Accepted Answer

The deposit base and other funding sources are managed in order to fund loan and other commitments.

Answer

The liability to assets ratio is maintained within Reserve Bank standards.

Answer

The ratio of debt to equity is managed to meet capital adequacy requirements.

Answer

The loan portfolio is tailored to match the available deposit base.

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