Question

Liability management refers to: a bank's handling of the assets in individual trust funds. a bank's handling of loans and other assets. how a bank attracts deposits and what it pays for them. how a bank manages its accounts receivable.

Answer 1

Answer:

Liability management refers to how a bank handles it loans and other assets.

Explanation:

Liability management is a practice adopted by banks to keep a balance between assets and liabilities, so that they possess enough liquidity to facilitate lending and also a healthy balance sheet is maintained. Banks need to keep a balance between maturity of their assets and liabilities. It is a mechanism to address the risk of mismatch in bank's assets and liabilities.