Question
Which of the following metric of the bank is dependent
on the movements of the interest rate?Solution
The management of Interest Rate Risk should be one of the critical components of market risk management in banks. The Net Interest Income (NII) or Net Interest Margin (NIM) of banks is dependent on the movements of interest rates. Any mismatches in the cash flows (fixed assets or liabilities) or repricing dates (floating assets or liabilities), expose banks’ NII or NIM to variations. The earning of assets and the cost of liabilities are now closely related to market interest rate volatility
Which of the following Statements about the Government Securities is/are True?
I- They are less likely to be defaulted, as backed by the Sover...
The National Institute for Micro, Small and Medium Enterprises (NIMSME), which functions as an apex organisation for MSME training, research, and policy...
How many kilometers of inland waterways will be built to navigable waterways and strategic locations on key international maritime trade routes?
Under credit guarantee scheme for micro and small enterprises, The limit on ceiling for guarantees has been enhanced from Rs. 2 crore to —
Which of the following areas are challenging and need fresh initiatives for development in rural India?
(1) Development of human resources
...Polymorphism in fungi was first observed by:
Which of the following statement is not true about the scheme mentioned in the passage?
I. It aims to develop infrastructure in 500 cities
Which of the following statements accurately reflect the interconnectedness of the Sustainable Development Goals (SDGs)?
Statement A: Achievin...
In the event of non-supply of food grains, how the Government compensate the beneficiaries under the NFSA?
One of the sub-schemes of SMILE is Central Sector Scheme for Comprehensive Rehabilitation for Welfare of Transgender Persons. Which of the following is ...