1. The ___________________ view of assets and liabilities held that the amount and types of deposits was primarily determined by customers and hence the key decision a bank needed to make was with the assets.

asset management

liability management

fund management

asset liability management

None of the above.

unanswered

2. The __________________________ component of interest rates is the risk premium due to the probability that the borrower will miss some payments or will not repay the loan.

Inflation risk

Default risk

Liquidity risk

Price risk

Maturity risk

unanswered

3. The principal goal of interest-rate hedging strategy is to hold fixed a bank's:

Net interest margin

Net income before taxes

Value of loans and securities

Noninterest spread

None of the above.