If an Organisation Has a Repricing Gap Equal to a Positive

question 51

Multiple Choice

If an organisation has a repricing gap equal to a positive $20 million,a 500 basis point drop in interest rates will cause profits to:

• A) rise by $1.0 million.
• B) rise by $10 million.
• C) fall by $1.0 million.
• D) fall by $10 million.

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Definitions:

Margin of Error

An expression of the amount of random sampling error in a survey's results, representing how much the survey results are expected to differ from the true population value.

Confidence Interval

An interval of values calculated from sample data that has a specified probability of including the accurate population parameter.

Confidence Level

A statistical measure that quantifies the uncertainty or certainty in a sampling method, often expressed as a percentage.

Mean Cholesterol Level

The average amount of cholesterol present in the blood, calculated by summing all cholesterol levels and dividing by the number of observations.