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1.) 2.) 3.) Given a 6 month time-frame, which of the following assets is not rate sensitive? Three-month T-bill. Federal Funds Sold (daily repricing). Two
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Given a 6 month time-frame, which of the following assets is not rate sensitive? Three-month T-bill. Federal Funds Sold (daily repricing). Two year Treasury bond with annual coupon payments. Four-year fully amortized car loan with $350 monthly payments including both principal and interest. Holding all other bank characteristics constant, if the bank triples in size, what happens to net interest income? Net interest income will not change. Net interest income will double. Net interest income will triple. There is no fixed relationship between changes in bank size and net interest income. Which of the following are likely to occur when interest rates fall sharply? Fixed-rate loans are refinanced. Deposits are withdrawn early. All of the above occur when interest rates fall sharply. O None of the above occur when interest rates fall sharplyStep by Step Solution
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