An FI with a Negative Gap of $20 Million Suffers

question 40

True/False

An FI with a negative gap of $20 million suffers a $0.2 million decrease in its net interest income if interest rates decrease by 1 per cent.

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Definitions:

α-D-Glucopyranose

An isomer of glucose that is a six-membered oxygen-containing ring (pyranose form), important in biology and nutrition.

Anomers

Carbohydrates that differ in configuration only at the hemiacetal or hemiketal carbon atom, often referred to as the anomeric carbon.

Optical Rotation

The measurement of the degree to which a chiral compound rotates plane-polarized light, a property specific to chiral substances.

α-D-Glucopyranose

A cyclic form of glucose where the ring consists of five carbon atoms and one oxygen atom, with the glucose in its alpha configuration.