Question

Which of the following is not a major objective of funds management?

• A. Compliance with regulatory requirement
• B. Minimize interest rate risk
• C. Minimize liquidity risk
• D. Deployment of funds so as to maximize the return

Answer 1

Answer:

B. Minimize interest rate risk

The major objectives of funds management typically focus on: Ensuring liquidity so the organization can meet its obligations (C) Efficient deployment of funds to earn returns (D) Compliance with regulatory requirements (A) Minimizing interest rate risk (B) is more specific to investment management or treasury operations, not a core objective of general funds management.