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Question
A bank's IS GAP is defined as:
A. the dollar amount of interest-sensitive assets divided by the dollar amount of interest-sensitive liabilities.
B. the dollar amount of earning assets divided by the dollar amount of total liabilities.
C. the dollar amount of interest-sensitive assets minus the dollar amount of interest-sensitive liabilities.
D. the dollar amount of interest-sensitive liabilities minus the dollar amount of interest-sensitive assets.
E. the dollar amount of earning assets times the average liability interest rate.
Answer
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Related questions
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Which of the following adjustments are made to gross loans and leases to obtain net loans and leases?
A. Loan and lease loss allowance is added to gross loans.
B. Unearned income is subtracted from gross interest received.
C. Investment income is added to gross interest received.
D. Loan and lease loss allowance and unearned income is subtracted from gross loans.
E. Loan and lease loss allowance is subtracted from gross loans and investment income is added to gross interest received.
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Which of the following would not be a telephone service that customers can get from a bank call center?
A. The current balance in their account
B. A fax copy of a loan application to the bank
C. List of what transactions have passed through the account
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A(n) _________________________ is an agreement between a buyer and a seller today which calls for the delivery of a particular security in exchange for cash at some future date for a set price.
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According to the textbook, the lackadaisical profit performance surrounding a merger may be explained by the:
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C. accounting irregularities when reporting earnings of the combined entity.
D. managerial hubris and sizeable merger premium that acquirers have to pay to shareholders of the acquired firms.
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