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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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