题目
题目

ECN 001B C01-C06 WQ 2025 Homework 7 - The Business of Banking

单项选择题

The episode described in Question 2 goes by the name of:

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The question provided to analyze is: 'The episode described in Question 2 goes by the name of:' Option list: (none are shown in the provided data) Because the answer_options field is empty, there are no specific choices to evaluate individually. Without explicit options, it is not possible to perform the typical option-by-option analysis needed to distinguish correct from incorrect statements......Login to view full explanation

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类似问题

Suppose you were in charge of prudential regulation and encountered this bank: Assets                                                  Liabilities Loans to SMEs     $ 60                       Retail Deposits $40 T-bills                     $30                       Seven-year long-term bonds: $40 Cash                       $10                                                             Equity                                                             Paid in capital: $5                                                             Retained earnings: $15 The loans, bonds and deposits are all floating rate. The bank pays fixed for seven years on a interest rate swap with a notional of $40 to secure its funding costs. What would you tell the bank?

The repricing gap model has significant limitations including all of the following EXCEPT:

A bank has $500 millionin rate-sensitive assetsand, 400million in rate-sensitive liabilities within a one-year time horizon. If interest rates increase by 1.5% (150 basis points), what is the predicted change in annual net interest income?

Question3 Which of the following statements is FALSE? Select one alternative: a. For a typical depository institution, interest rate risk can be minimised if duration of assets is always maintained above the leverage adjusted duration of the liabilities. b. Immunisation requires portfolio rebalancing when interest rates move. c. Measurement of an FI's interest rate risk is rendered inaccurate due to the presence of off-balance sheet assets and liabilities. d. Duration model estimates the change in market value of an FI when interest rate changes. e. A manager should consider the cost of restructuring the balance sheet before deciding to immunise the interest rate risk sensitivity gap of the FI. ResetMaximum marks: 2 Flag question undefined

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