Consider the Following Repricing Buckets and Gaps What Is the Annualised Change in the Bank's Future Net

question 59

Multiple Choice

Consider the following repricing buckets and gaps: $$\begin{array} { | l | r | r | r | } \hline \text { Repricing bucket } & { \text { Assets } } & { \text { Liabilities } } &{ \text { Gaps } } \\\hline \text { 1 day } & \$ 50000 & \$ 120000 & - \$ 70000 \\\hline \text { 1 day to 3 months } & \$ 100000 & \$ 70000 & \$ 30000 \\\hline \text { 3 to 6 months } & \$ 100000 & \$ 100000 & \$ 0 \\\hline \text { 6 to 12 months } & \$ 250000 & \$ 80000 & \$ 170000 \\\hline 1 \text { to 5 years } & \$ 75000 & \$ 130000 & - \$ 55000 \\\hline \text { Over 5 years } & \$ 25000 & \$ 100000 & - \$ 75000 \\\hline\end{array}$$ What is the annualised change in the bank's future net interest income if the overnight interest rate increased by 100 basis points?

• A)-$700
• B)$700
• C)-$7000
• D)$7000

Identify different cognitive systems in the human mind and their functions.

Recognize the role of the environment and culture in influencing human behavior and thought processes.

Understand the principles of natural selection and its relevance to human evolution.

Understand the basic functions and characteristics of money.

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Definitions:

Experience Curve

The concept that costs decline and efficiency improves as a company gains more experience in production and operations over time.

Cost Reductions

Cost reductions involve strategies and actions taken to lower the expense of operations or production in a business, aiming to increase profitability without compromising quality.

Exchange Rates

The value of one currency expressed in terms of another currency.

Technical Progress

Technical progress refers to the advancements in technology that increase the efficiency and productivity of processes, operations, and products within various industries.