1. If a bank follows a strategy in which it buys reserves to cover loan requests they are likely doing:
a funds management.
b asset management.
c liability management.
d asset-liability coordinated management.
e None of the options is correct.
2. You invest in a savings instrument in which you firstly make a lump sum payment. This amount is invested (i.e. by a manager) in different assets and at a later point you receive a stream of income. This is known as:
a a leveraged buyout.
b an annuity.
c the net asset value.
d a hedge fund.
e None of the options is correct.