With a Six-Month Maturity Bucket,a Nine-Month Fixed-Rate Loan Would Be

question 22

Multiple Choice

With a six-month maturity bucket,a nine-month fixed-rate loan would be considered a ________ asset and a 30-year mortgage with a rate adjustment in three months would be classified as a ________ asset.

• A)rate-sensitive; fixed-rate
• B)rate-sensitive; rate-sensitive
• C)fixed-rate; fixed-rate
• D)fixed-rate; rate-sensitive
• E)fixed-rate; nonearning

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Definitions:

Gain

The financial benefit obtained when the amount earned from a financial transaction exceeds the amount spent.

Comprehensive Income

An inclusive measure of income which includes both net income and other comprehensive income, capturing all changes in equity not resulting from transactions with owners.

Equity

The value of an owner's shares in a company, calculated as the difference between assets and liabilities.

Short-term Investments

Monetary resources anticipated to be turned into cash or disposed of in the span of one year.