If an FI's Repricing Gap Is Less Than Zero, Then

question 113

Multiple Choice

If an FI's repricing gap is less than zero, then

• A)it is deficient in its required reserves.
• B)it is deficient in its capital ratio requirement.
• C)its liability costs are more sensitive to changing market interest rates than are its asset yields.
• D)its liability costs are less sensitive to changing market interest rates than are its asset yields.
• E)the duration of the FI's liabilities exceeds the duration of FI's assets.

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Definitions:

Chronic Myelogenous Leukemia

A type of cancer that affects the bone marrow and blood, characterized by the overproduction of white blood cells.

Jacobsen Syndrome

A rare genetic disorder characterized by a deletion on chromosome 11, leading to developmental delays and physical abnormalities.

Chromosome 11

One of the 23 pairs of chromosomes in humans, containing genes that play roles in the immune system, among other functions.

Genetic Defects

Abnormalities in an organism's DNA that lead to diseases or malformations, sometimes hereditary and can be present at birth or develop over time.