Banking · Pricing Models in Retail Banking
Read the following statements carefully: Statement 1: The fundamental concept of costing in pricing models is unrelated to asset-liability management (ALM) practices of banks. Statement 2: Regulatory advice, whether overt or covert, plays a role in influencing the pricing models used by banks. Which of the following options is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both Statement 1 and Statement 2 are incorrect
- 2Both Statement 1 and Statement 2 are correct
- 3Statement 1 is incorrect, but Statement 2 is correct✓
- 4Statement 1 is correct, but Statement 2 is incorrect
Correct answer
Statement 1 is incorrect, but Statement 2 is correct
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