8-53 Which of the Following Describes the Condition Known as Runoff

question 44

Multiple Choice

8-53 Which of the following describes the condition known as runoff in the repricing model approach to measuring interest rate risk of an FI?

• A)Periodic cash flow of interest and principal amortization payments on long-term assets that can be reinvested at market rates.
• B)The effect that a change in the spread between rates on RSAs and RSLs has on net interest income as interest rates change.
• C)Mismatch of asset and liabilities within a maturity bucket.
• D)The relations between changes in interest rates and changes in net interest income.
• E)Those deposits that act as an FI's long-term sources of funds.

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