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Fill in the Blank Questions 1 . The _ _ _ view of assets and liabilities held that the amount and types of deposits was
Fill in the Blank Questions 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 The is the interest rate that equalizes the current market price of a bond with thepresent value of the future cash flows The shows the relationship between the time to maturity and the yield to maturity of bonds. 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 When a bank has a negative duration gap, a parallel decrease in the interest rates on the assetsand liabilities of the bank will lead to anin the bank's net worth.
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