1. The "repricing gap" model focuses on changes in the ____________ of a bank
a. market value of assets
b. market value of liabilities
c. interest income and interest expense
d. non-interest expenses
e. a and b
2. A "rate sensitive liability" in a one-year maturity bucket represents the amount of liabilities that __________________ within one year.
a. may mature
b. may have adjustable interest rates
c. will not be rolled
d. a and b
e. all of the above
3. CSUN National Bank is experiencing an unexpected and large number of requests for funds under existing loan commitments. This is the essence of:
a. asset side liquidity risk
b. credit risk
c. net deposit drain
d.liability side liquidity risk
e. c and d
4. If a bank has to raise liquidity by selling off loans on short notice, the prices on such loan sales would be termed __________ prices.
a. fire-sale
b. maximum liquidity
c. deposit drain
d. face value
e. book value