Financial Risk Manager Part 2
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Which of the following is considered a best practice of liquidity transfer pricing (LTP)?
A
A centralized treasury funding center should be implemented to manage the liquidity cushion across business units.
B
Banks should rely on external factors to improve LTP by meeting regulatory authority requirements.
C
Remuneration policies should not be linked to LTP to help incentivize business unit managers to produce longer-term assets.
D
Contingent collateral calls and derivatives should not be included in the LTP process but managed separately to properly account for risks.