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Chapter 7 Risk concern for changing Interest Rates: Asset-Li tycoon centering and Duration Techniques Fill in the Blank Questions 1.The ___________________ view of summations and liabilities held that the bring out forth and types of deposits was primarily determined by customers and hence the tonality finding a sceptre needed to make was with the assets. wait on: asset management 2.Recent decades go for ushered in dramatic changes in banking. The goal of __________________ was simply to gull control of the banks sources of funds. serve up: monetary obligation management 3.The__________________________ is the provoke rate that equalizes the current marketplace equipment casualty of a baffle with the present value of the incoming specie flows. firmness: getting even to maturity (YTM) 4.The __________________ risk superior on a link allows the investor to be compensated for their project button in purchase power from the increase in the prices of goods and service in the future. attend: inflation 5.The __________________ shows the relationship among the condemnation to maturity and the issuance to maturity of a join. It is commonly constructed exploitation treasury securities since they be assumed to have no heedlessness risk. effect: supply curve 6.

The __________________ risk reward on a bond reflects the departures in the ease and ability to shit the bond in the secondary market at a favorable price. rejoinder: liquidity 7.__________________________ are those assets which board or must be repriced within the planning period. Answer: Interest-sensitive assets 8.__________________________ is the difference between interest-sensitive assets and interest-sensitive liabilities. Answer: Dollar interest-sensitive gap 9.A(n)__________________________ style that the bank has more interest-sensitive liabilities than interest-sensitive assets. Answer: negative interest-sensitive gap (liability sensitive) 10.The banks__________________________...If you insufficiency to attract a upright essay, order it on our website: Ordercustompaper.com

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