Exhibit 21 -Refer to Exhibit 21

question 7

Multiple Choice

Exhibit 21.3
Use the Information Below for the Following Problem(S)
As a relationship officer for a money-center commercial bank, one of your corporate accounts has just approached you about a one-year loan for $3,000,000. The customer would pay a quarterly interest expense based on the prevailing level of LIBOR at the beginning of each quarter. As is the bank's convention on all such loans, the amount of the interest payment would then be paid at the end of the quarterly cycle when the new rate for the next cycle is determined. You observe the following LIBOR yield curve in the cash market:
$\begin{array}{ll}90 \text {-day LIBOR } & 4.70 \% \\180 \text {-day LIBOR } & 4.85 \% \\\text { 270-day LIBOR } & 5.10 \% \\\text { 360-day LIBOR } & 5.40 \%\end{array}$
-Refer to Exhibit 21.3.If 90-day LIBOR rises to the levels "predicted" by the implied forward rates,what will the dollar level of the bank's interest receipt be at the end of the third quarter?

• A) $35,250.00
• B) $36,375.00
• C) $38,250.00
• D) $41,005.50
• E) None of the above

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Definitions:

Children

Young human beings who are not yet adults, typically characterized by rapid physical growth and development, as well as progression in cognitive and social abilities.

Human Resource Planning

The process organizations use to ensure they have the right number and types of people, at the right time, to effectively execute their business strategy.

Strategic Management

The process of formulating and implementing strategies.

Management by Objectives

Management by Objectives is a strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed upon by both management and employees.