1) Which of the following are sources of interest rate risk?

A)	property management risk

B)

beta risk

C)	standard deviation risk

D)	coefficient of variation risk

E)	all of the above

F)	none of the above

2) Embedded options risk is:

A)	risk that assets and liabilities take on new rates at different times

B)	risk associated with change in market rate differentials across various assets and liabilities

C)	risk associated with the change in interest rates across various maturities

D)	risk associated with customers ability to alter the banks cashflows via prepayments or withdrawals

E)	all of the above

F)	none of the above

3) Gap is defined as:

Question 3 options:

A)	the difference in total assets and total liabilities

B)	the sum of total assets and total liabilities

C)	the difference in rate sensitive assets and rate sensitive liabilities

D)	the sum of rate sensitivities and rate sensitive liabilities

E)	none of the above

4) An asset or liability is rate sensitive over a given time period if:

A)	it matures in that time period

B)	it is a variable-rate instrument that resets it rate during that time period

C)	it is expected to be prepaid or withdrawn during the time period

D)	all of the above

E)	none of the above