An increase in interest rates
A) increases the market value of the FI's financial assets and liabilities.
B) decreases the market value of the FI's financial assets and liabilities.
C) decreases the book value of the FI's financial assets and liabilities.
D) increases the book value of the FI's financial assets and liabilities.
E) has no impact on the market value of the FI's financial assets and liabilities.
Correct Answer:
Verified
Q73: If an FI's repricing gap is less
Q74: A bank that finances long-term fixed-rate mortgages
Q75: The repricing model measures the impact of
Q76: The repricing model ignores information regarding the
Q77: If the chosen maturity buckets have a
Q79: What is spread effect?
A)Periodic cash flow of
Q80: Which of the following statements is true?
A)An
Q81: What is the weighted average maturity of
Q82: Total one-year rate-sensitive assets is
A)$540 million.
B)$580 million.
C)$555
Q83: The gap ratio is
A).015.
B)-.015.
C).025.
D)-.144.
E).154.
[Reference: 8-84]
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