An FI with a Neutral Repricing Gap in Its Three

question 30

True/False

An FI with a neutral repricing gap in its three to six month bucket is hedged against any interest rate changes at all points in time.

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Definitions:

User Cost

The opportunity cost of extracting and selling a non-renewable natural resource today rather than waiting to extract and sell the resource in the future; the present value of the decline in future revenue that will occur because a nonrenewable natural resource is extracted and sold today rather than being extracted and sold in the future.

Extraction Cost

All costs associated with extracting a natural resource and readying it for sale.

Quantity of Gold Bars

The total number or weight of gold bars held or transacted.

Renewable Natural Resource

A resource that can replenish itself naturally over time, such as solar energy, wind, and biomass.