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Exam 2016-FRR Topic 1 Question 175 Discussion

Actual exam question for GARP's 2016-FRR exam
Question #: 175
Topic #: 1
A key function of treasuries in commercial/retail banks is:
I. To manage the interest margin of the banks.
II. To focus on underwriting risk.
III. To ensure strong earnings.
IV. To increase profit margins.

Suggested Answer: A Vote an answer

A key function of treasuries in commercial/retail banks is to manage the interest margin of the banks. This involves overseeing the spread between the interest income generated from loans and other interest-earning assets and the interest expense paid on deposits and other interest-bearing liabilities. This function is crucial for maintaining profitability and ensuring the financial stability of the bank.
References: No specific reference found in the document for this question. The provided answer is based on common practices in treasury management within banks.

by Egbert at Apr 04, 2025, 11:45 PM

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