If an Organisation Has a Repricing Gap Equal to a Positive

question 13

Multiple Choice

If an organisation has a repricing gap equal to a positive $20 million,a 500 basis point increase 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.

---

Definitions:

Asymmetric Functioning

Asymmetric Functioning involves non-equal or unbalanced activity or processes within the brain or between different parts of an organism's body or behavior.

Memory

The cognitive function that enables an individual to store, retain, and recall information from past experiences.

Skinner--operant Conditioning

An adaptation process in learning where the level of a behavior's intensity is recalibrated through reward systems or disciplinary actions.

Pavlov--classical Conditioning

A learning process discovered by Ivan Pavlov that occurs through associations between an environmental stimulus and a naturally occurring stimulus.