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      Question

      In banking, what does ALM stands for:

      A Asset Liability Maturity Correct Answer Incorrect Answer
      B Advance Liability Mismatch Correct Answer Incorrect Answer
      C Asset Liability Management Correct Answer Incorrect Answer
      D Advance Loan Management Correct Answer Incorrect Answer
      E Advance Liability Management Correct Answer Incorrect Answer

      Solution

      Asset Liability Management (ALM) can be defined as a mechanism to address the risk faced by a bank due to a mismatch between assets and liabilities either due to liquidity or changes in interest rates. Liquidity is an institution's ability to meet its liabilities either by borrowing or converting assets.

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