Which of the Following Is a Measure for Banks to Use

question 38

Multiple Choice

Which of the following is a measure for banks to use to assess their exposure to interest rate risk?

• A) capital ratio
• B) leverage measure
• C) duration measurement
• D) gap ratio
• E) C and D

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Definitions:

Fraudulent Transfer

A conveyance of property made with the intent to defraud creditors or to evade financial responsibilities.

Actual Intent

The genuine intention or purpose behind a party's actions, especially in legal contexts where motives are a focal point.

Transferring Property

The act of passing the ownership of an asset or property from one party to another through sale, gift, or other methods.

Security Interest

A legal right or claim against collateral pledged as security for the repayment of a loan.