A Bank Has a Negative Repricing Gap and Estimates That

question 28

Multiple Choice

A bank has a negative repricing gap and estimates that the spread between RSAs and RSLs will move inversely with interest rates. If interest rates increase,NII will

• A)rise.
• B)fall.
• C)be unchanged.
• D)rise or fall depending on the size of the spread effect relative to the size of the CGAP effect.

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Incidence

The occurrence, rate, or frequency of a disease, disorder, or event in a specified population over a particular period of time.

Small Population

A group of individuals or entities considered small in number within a larger context or comparison.

Epidemiological Study

A research investigation that aims to identify the patterns, causes, and control of diseases in groups of people.