Floating-Rate Loans Cannot Completely Eliminate Interest Rate Risk; If the Cost

question 42

True/False

Floating-rate loans cannot completely eliminate interest rate risk; if the cost of funds is changing more frequently than the rate on assets, the bank's net interest margin is still affected by interest rate fluctuations.

---

Definitions:

Facial Features

Visible attributes of the face, such as the eyes, nose, and mouth, which are often used in biometric identification and expression analysis.

Fetal Alcohol Syndrome

Fetal alcohol syndrome is a condition in a child that results from alcohol exposure during the mother's pregnancy, causing brain damage and growth problems.

Malformations

Structural deformities or imperfections in the body, often present from birth, that can affect various parts of the body.

Utero

The term refers to the uterus, indicating something related to or taking place within the uterus.