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    Question

    ALM stands for 

    A Asset Liquid Management Correct Answer Incorrect Answer
    B Automated Liability Management Correct Answer Incorrect Answer
    C Asset Liability Management Correct Answer Incorrect Answer
    D Automated Liability Management Correct Answer Incorrect Answer
    E None of these 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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