Examlex
9-119 What is this bank's interest rate risk exposure,if any?
a.The bank is exposed to decreasing interest rates because it has a negative duration gap of ?0.21 years.
b.The bank is exposed to increasing interest rates because it has a negative duration gap of ?0.21 years.
c.The bank is exposed to increasing interest rates because it has a positive duration gap of +0.21 years.
d.The bank is exposed to decreasing interest rates because it has a positive duration gap of +0.21 years.
e.The bank is not exposed to interest rate changes since it is running a matched book.
Workers
Individuals engaged in any form of employment, providing labor to produce goods or deliver services in exchange for wages, salaries, or other forms of compensation.
Profits
The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining those activities.
Labor Union
Worker organization that seeks to secure economic benefits for its members.
Collective Bargaining
Negotiations between union and management to obtain agreements on wages, working conditions, and other issues.
Q13: 6-4 Personal credit institutions specialize in making
Q15: 12-12 Most portfolio managers will accept some
Q26: 9-23 Investing in a zero-coupon asset with
Q29: 8-33 The maturity gap for a bank
Q39: 6-23 Finance companies prefer to lease equipment
Q53: 9-52 The error from using duration to
Q59: 3-18 Pension fund management is a relatively
Q66: 7-33 Economies of scope involve the ability
Q94: 13-49 To be an affiliate of a
Q102: 7-7 Matching the maturities of assets and