n 39 In the context of Repricing model, evaluate each of the following statements: saved out of Statement 1: With equal changes in rates on Rate Sensitive assets (RSAs) and Rate Sensitive Liabilities (RSLs), when CGAP is positive, the change in Net Interest Income is positively related to the change in interest rate n Statement 2: With unequal changes in rates on Rate Sensitive assets and Rate Sensitive Liabilities, there is a spread effect in addition to the GAP effect Statement 3: If the spread between the rate on RSAs and RSLs increases, when interest rates rise (fall), interest revenue increases (decreases) by more (less) than interest expense. The result is an increase in NII. Statement 4: In general, the spread effect is such that, regardless of the direction of the change in interest rates, a negative relation occurs between changes in the spread (between rates on RSAs and RSLs) and changes in NII. Which of the following about the above statements is correct? a. Statement 1, statement 2 and statement 4 are correct b. Statement 2, statement 3 and statement 4 are correct c. Statement 1, statement 3 and statement 4 are correct d. Both statements 1 and 2 are correct but statement 3 is not correct e. Statement 1, statement 2 and statement 3 are correct Clear my choice n 39 In the context of Repricing model, evaluate each of the following statements: saved out of Statement 1: With equal changes in rates on Rate Sensitive assets (RSAs) and Rate Sensitive Liabilities (RSLs), when CGAP is positive, the change in Net Interest Income is positively related to the change in interest rate n Statement 2: With unequal changes in rates on Rate Sensitive assets and Rate Sensitive Liabilities, there is a spread effect in addition to the GAP effect Statement 3: If the spread between the rate on RSAs and RSLs increases, when interest rates rise (fall), interest revenue increases (decreases) by more (less) than interest expense. The result is an increase in NII. Statement 4: In general, the spread effect is such that, regardless of the direction of the change in interest rates, a negative relation occurs between changes in the spread (between rates on RSAs and RSLs) and changes in NII. Which of the following about the above statements is correct? a. Statement 1, statement 2 and statement 4 are correct b. Statement 2, statement 3 and statement 4 are correct c. Statement 1, statement 3 and statement 4 are correct d. Both statements 1 and 2 are correct but statement 3 is not correct e. Statement 1, statement 2 and statement 3 are correct Clear my choice