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What Is Funds Transfer Pricing in the ALM Process

Question 300

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What is Funds Transfer Pricing in the ALM process?


A) A maturity analysis of a bank's interest-bearing assets and interest-bearing liabilities.
B) A method used to measure how much each source of funding is contributing to overall profitability.
C) A calculation of the spread between the duration of the interest-bearing assets and the interestbearing liabilities.
D) The evaluation and management of the gap between a bank's volume of loans and deposits.

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