QUESTION $1$

Liability restructuring involves $\_\_\_\_\_$ the proportion of floating$-$rate liabilities and $\_\_\_\_\_$ the

proportion of floating$-$rate liabilities.

a$.$ Enhancing, reducing$$

b$.$ Maintain, balancing

c$.$ Reducing, stabilizing

d$.$ Increasing, also increasing

QUESTION $2$

Consolidated gap reporting, which consists of converting all foreign currency positions into the

a$.$ Home currency$$

b$.$ Dollars

c$.$ Euro

d$.$ International currency

QUESTION $3$

Gap analysis identifies risk.

a$.$ basis

b$.$ correlation

c$.$ repricing$$

d$.$ yield curve.

QUESTION $4$

When the gap is negative, we refer to it as

a$.$ rate$-$sensitive assets exceed its rate$-$sensitive liabilities.

b$.$ liabilities reprice before assets.

c$.$ assets reprice prior to liabilities.

d$.$ None of the above$$

QUESTION $5$

Nonfinancial organizations to key customers.

a$.$ also use$$

b$.$ do not use

c$.$ do not need

d$.$ never use

QUESTION $6$

Traditionally internal risk rating systems $($IRS$)$ are used by financial institutions to

a$.$ accept or reject new transactions

b$.$ monitor credit quality

c$.$ judge adequacy of loan loss reserves and capital

d$.$ All of the above$$