Which of the following will cause a bank's 1-year cumulative GAP to decrease, everything else the same.
A) An increase in 3-month loans and an offsetting increase in 9-month loans.
B) A decrease in 6-month loans and an offsetting increase in 2-year CDs.
C) An increase in 9-month CD's and an offsetting increase in 5-year CDs.
D) a.and c.
E) b.and c.
Correct Answer:
Verified
Q5: If a bank has a negative GAP,
Q6: Interest rate risk:
A) varies inversely with a
Q7: A bank's cumulative GAP:
A) is defined as
Q9: An asset would normally be classified as
Q12: Which of the following will cause a
Q12: If a bank has a negative GAP,
Q13: A bank's periodic GAP:
A) is defined as
Q14: If rate-sensitive assets equal $500 million and
Q18: If rate-sensitive assets equal $600 million and
Q20: A bank's GAP is defined as:
A) the
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