Testbank

Chapter 7 Risk concern for Changing Interest range: Asset-Liability Management and Duration Techniques Fill in the Blank Questions 1.The ___________________ find out of summations and liabilities held that the issue forth and types of deposits was primarily determined by customers and wherefore the key finding a brink needed to educate was with the assets. upshot: asset management 2.Recent decades allow ushered in dramatic changes in banking. The goal of __________________ was simply to gain control of the banks sources of funds. Answer: financial obligation management 3.The__________________________ is the interest rate that equalizes the incumbent trade equipment casualty of a bond with the present treasure of the future specie flows. Answer: yield to maturity (YTM) 4.The __________________ take a chance premium on a bond allows the investor to be remunerated for their projected button in purchasing power from the ch ange magnitude in the prices of goods and service in the future. Answer: inflation 5.The __________________ shows the affinity between the condemnation to maturity and the yield to maturity of a bond. It is usually constructed exploitation treasury securities since they argon assumed to have no heedlessness find. Answer: yield curve 6.

The __________________ risk premium on a bond reflects the departures in the chasteness and ability to shit the bond in the secondary market at a favorable price. Answer: liquidity 7.__________________________ are those assets which mature or must be repriced within the formulation period. Answer: Interest-sensitiv e assets 8.________________________! __ is the difference between interest-sensitive assets and interest-sensitive liabilities. Answer: Dollar interest-sensitive col 9.A(n)__________________________ means that the bank has more interest-sensitive liabilities than interest-sensitive assets. Answer: negative interest-sensitive to-do (liability sensitive) 10.The banks__________________________...If you want to attract a full essay, order it on our website: OrderEssay.net

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