A Bank with a Negative Repricing (Or Funding) Gap Faces

question 57

True/False

A bank with a negative repricing (or funding) gap faces refinancing risk.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, remaining constant regardless of business activity levels.

Self-actualization Needs

According to Maslow's hierarchy, the highest level of psychological development where an individual reaches their full potential.

Psychological Development

The growth and change in an individual's cognitive, emotional, and social capabilities and behaviors throughout their life.

Esteem Needs

A concept in Maslow's hierarchy referring to the human desire for respect, self-esteem, and recognition from others.