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Question
The earnings change ratio:a. is defined as yield on rate-sensitive liabilities divided by the yield on rate-sensitive assets.
b. measures how the yield on an asset is assumed to change given a 1% change in some base rate.
c. measures the change in net interest income for a given change in some base rate.
d. All of the above.
e. a. and c.
Answer
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Related questions
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Which of the following is not true regarding collateralized mortgage obligations (CMOs)?
a. Interest earned on CMOs is exempt from state income taxes.
b. CMO yields are generally higher than comparable Treasury yields.
c. CMOs exhibit little default risk.
d. All of the above are true.
e. Only a. and c. are true.
Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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b. are limited to "negative" provisions.
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Q:
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