What Is Spread Effect

question 18

Multiple Choice

What is spread effect?

• A)Periodic cash flow of interest and principal amortization payments on long-term assets that can be reinvested at market rates.
• B)The effect that a change in the spread between rates on RSAs and RSLs has on net interest income as interest rates change.
• C)The effect of mismatch of asset and liabilities within a maturity bucket.
• D)The premium paid to compensate for the future uncertainty in a security's value.
• E)The value of an FI to its owners.

---

Definitions:

Timed Urine

A method of collecting all urine produced and expelled by the body over a specific period for diagnostic purposes.

Collection Bottle

A receptacle used for collecting and storing fluids or samples in medical settings.

Gastric Secretions

Fluids produced by the stomach, including hydrochloric acid and digestive enzymes, that aid in food digestion.

Coffee-Ground Secretions

Vomited material that resembles coffee grounds due to the presence of coagulated blood, often indicating bleeding in the gastrointestinal tract.