πŸ“’ Too many exams? Don’t know which one suits you best? Book Your Free Expert πŸ‘‰ call Now!

  • google app store apple app store
  • βœ–

      Question

      The Net Interest Income (NII) can be insulated from the

      volatility of interest rate by ______ of assets and liabilities closely.
      A Matching maturity Correct Answer Incorrect Answer
      B Matching interest rate Correct Answer Incorrect Answer
      C Matching profit margin Correct Answer Incorrect Answer
      D Matching credit risk Correct Answer Incorrect Answer
      E Matching operational risk Correct Answer Incorrect Answer

      Solution

      The actual management of bank’s assets and liabilities focuses on controlling the gap between rate sensitive assets and rate sensitive liabilities. Β  The NII can be insulated from the volatility of interest rate by matching maturities of assets and liabilities closely.

      Practice Next
      ask-question