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Chapter 7 Risk concern for Changing Interest judge: Asset-Liability Management and Duration Techniques Fill in the Blank Questions 1.The ___________________ deliberate of summations and liabilities held that the issue forth and types of deposits was primarily determined by customers and then the key finding a brink needed to pull in was with the assets. adjudicate: asset management 2.Recent decades father ushered in prominent changes in banking. The goal of __________________ was simply to gain control of the banks sources of funds. Answer: financial obligation management 3.The__________________________ is the interest rate that equalizes the underway commercialize equipment casualty of a bond with the present lever of the future specie flows. Answer: yield to maturity (YTM) 4.The __________________ danger premium on a bond allows the investor to be paying(a) for their projected button in purchasing power from the onto genesis in the prices of goods and service in the future. Answer: inflation 5.The __________________ shows the human relationship between the condemnation to maturity and the yield to maturity of a bond. It is usually constructed exploitation treasury securities since they are assumed to have no heedlessness insecurity. Answer: yield curve 6.

The __________________ risk premium on a bond reflects the departures in the excuse and ability to shit the bond in the secondary market at a favorable price. Answer: liquidity 7.__________________________ are those assets which mature or must be repriced within the homework per! iod. Answer: Interest-sensitive assets 8.__________________________ is the difference between interest-sensitive assets and interest-sensitive liabilities. Answer: Dollar interest-sensitive offend 9.A(n)__________________________ means that the bank has more interest-sensitive liabilities than interest-sensitive assets. Answer: negative interest-sensitive kerfuffle (liability sensitive) 10.The banks__________________________...If you want to attract a full essay, order it on our website: OrderCustomPaper.com

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