Multiple Choice
If a bank expects interest rates to fall,then it will want to:
A) achieve a positive ARBL.
B) achieve a negative ARBL.
C) lower the rate on its loans before it lowers the rates on its deposits.
D) increase the rates on its loans before it lowers the rates on its deposits.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: When a change in interest rate affects
Q2: Interest rate risk is the sensitivity of
Q3: When a firm raises funds from a
Q4: If a company has a three-year loan
Q6: If a financial organisation has a positive
Q7: If an organisation has _ interest-sensitive assets
Q8: An interest-sensitive asset or liability must:<br>A) have
Q9: The acronym ARBL used in risk management
Q10: When interest rates rise,a three-year bond with
Q11: If an organisation has more interest-sensitive liabilities