Multiple Choice
Which of the following statements is true?
A) An FI that has a positive on-balance-sheet gap and a negative off-balance-sheet gap is not sure about interest movements.
B) An FI that has a positive on-balance-sheet gap and a negative off-balance-sheet gap has made a mistake in hedging its interest rate risk.
C) An FI that has a positive on-balance-sheet gap and a negative off-balance-sheet gap is using its off-balance-sheet position to hedge its on-balance-sheet position.
D) None of the listed options are correct.
Correct Answer:
Verified
Correct Answer:
Verified
Q58: CGAP effect is the relationship between changes
Q59: Consider the following repricing buckets and
Q60: How do you interpret the position of
Q61: What is spread effect?<br>A)Periodic cash flow of
Q62: The Reserve Bank of Australia's (RBA) monetary
Q64: Which of the following statements is true?<br>A)A
Q65: Repricing gap refers to the:<br>A)difference between rate-sensitive
Q66: The repricing gap considers the timing and
Q67: The term 'rate-sensitive assets' refers to assets
Q68: Which of the following are rate-sensitive assets?<br>A)Short-term