A Bank Has a Positive Repricing Gap

question 24

Multiple Choice

A bank has a positive repricing gap. This implies that

• A)some RSAs are financed by fixed-rate liabilities.
• B)some RSLs are financing fixed-rate assets.
• C)some RSAs are financing equity.
• D)the bank has no fixed-rate assets.

---

Definitions:

Budget Deficit

A situation where a government's expenditures exceed its revenues, leading to a shortfall that must be financed through borrowing.

Budget Surplus

A financial situation where a government's or organization's revenue exceeds its expenditures over a given period.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing and the true yield to lenders or investors.

Budget Surplus

The financial situation in which a government's revenues exceed its expenditures over a specified period of time.