8-48 If an FI's Repricing Gap Is Less Than Zero,then

question 30

Multiple Choice

8-48 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:

Dichlorocyclopentane

A cyclic hydrocarbon with a five-membered ring structure, featuring two chlorine atoms attached to the ring.

Primary Alkyl Halide

An alkyl halide where the halogen atom is bonded to a carbon atom with only one other carbon atom attached, making it primary.

Isopropyl Bromide

An organic compound with the molecular formula C3H7Br, used primarily in organic synthesis as an alkylating agent.

T-butyl Iodide

T-butyl iodide, also known as tert-butyl iodide, is a colorless, flammable chemical compound used in organic synthesis, with the formula (CH3)3CI.