Interest Rate Risk Arises from Differences Between the Timing of Rate

question 81

Multiple Choice

Interest rate risk arises from differences between the timing of rate changes and the timing of cash flows ( _________ ) ;from changing rate relationships among different yield curves affecting bank activities ( ____________ ) ; from changing rate relationship across the spectrum of maturities ( ____________ ) ;and from internet-related options embedded in bank products ( _____________ ) . Choose the appropriate set.

• A) Repricing risk, basic risk, yield curve risk and option risk
• B) Basic risk, yield curve risk, option risk and Repricing risk
• C) Repricing risk option risk, yield curve risk, and basic risk
• D) Basic risk, yield curve risk, option risk and repurchasing risk

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Definitions:

Closing Sales

The final step in the sales process where agreements are finalized, and transactions are completed, securing the purchase.

Limited Warranty

A warranty that is restricted to certain parts, certain defects, or has a specified time limit.

Continuous-yes Close

The continuous-yes close is a sales technique where the salesperson asks a series of questions designed to elicit affirmative answers, leading to a positive response on the sale.