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:

Capital Acquisition

The process of acquiring funds or assets for the purpose of investment or enterprise growth.

Scientific Management

A management theory that advocates for the use of scientific methods to determine the most efficient ways to complete tasks and organize work.

Manufacturing

The method of transforming unprocessed materials, components, or parts into complete products that satisfy the demands or criteria of a customer.