1. As the dollar amount related to failing banks and thrifts in the 1980s mounted, which of the following was organized to handle and close those failing institutions: a. FDIC b. FOMC c. RTC d. TBTF

2. The measure of interest rate risk which uses the difference between rate-sensitive assets and rate-sensitive liabilities is called: a. gap management b. duration measurement c. maturity match d. regression analysis

3. If a banks RSA-RSL is negative, then: a. the bank is more favorably affected by rising interest rates; b. the bank is more favorably affected by falling interest rates; c. the bank is not more favorably affected by either a.) or b.) above; d. the bank is feeling pressure of an illiquidity crunch.