What Is Spread Effect

question 61

Multiple Choice

What is spread effect?

• A)Periodic cash flow of interest and principal amortisation payments on long-term assets that can be reinvested at market rates.
• B)The effect that a change in the spread between rates on rate-sensitive assets and rate-sensitive liabilities has on net interest income as interest rates change.
• C)The effect of mismatch of asset and liabilities within a maturity bucket.
• D)The premium paid to compensate for the future uncertainty in a security's value.

---

Definitions:

Human Resources Director

A senior executive responsible for the management and development of a company's or organization’s workforce.

Reporting Relationship

The hierarchical connection between an employee and their direct supervisor or manager.

Principal Role

The primary or most important function or responsibility of a position or individual in an organization.

Human Resources

A department within an organization that deals with employee-related functions, including recruitment, training, payroll, benefits, and compliance with labor laws.