A key function of treasuries in commercial/retail banks is:

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.
A . I
B . II
C . II, III
D . III, IV

View Answer

Answer: A

Explanation:

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.