Which of the Following Statements Is True

question 33

Multiple Choice

Which of the following statements is true?

• A)An FI with a repricing gap of zero is unsure about interest rate movements.
• B)An FI with a repricing gap of zero expects interest rates to rise.
• C)An FI with a repricing gap of zero expects interest rates to remain fall.
• D)An FI with a repricing gap of zero does not measure and manage its interest rate exposures.

---

Definitions:

Simple Interest Rate

A method of calculating interest where the rate is applied only to the principal amount, without compounding.

Invested

Assets or capital put into an endeavor or investment with the expectation of generating a profit.

Days

Units of time measuring 24 hours, constituting the most basic building block of calendars.

Missing Value

Data that is absent from a dataset, which can occur for various reasons and potentially impact analyses.