Question
TCO E & F) A bank has a positive repricing gap and estimates that the spread between RSAs and RSLs will move directly with interest
TCO E & F) A bank has a positive repricing gap and estimates that the spread between RSAs and RSLs will move directly with interest rates. If interest rates fall the banks overall NII will _____.
| rise |
| fall |
| necessarily be unchanged |
| rise, or fall, depending on the size of the spread affect relative to the size of the CGAP effect |
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Forecasting Principles And Practice
Authors: Rob J Hyndman, George Athanasopoulos
3rd Edition
0987507133, 978-0987507136
