Thank you

There is much emphasis by regulators on the bank's sensitivity to interest rate movements, since many banks have liabilities that are repriced more frequently than their assets and are adversely affected by rising interest rates.

Question 23 options:

	True
	False

The key reason for regulatory examinations (such as CAMELS ratings) is to

Question 24 options:

	a. rate past performance.
	b. detect problems of a bank in time to correct them.
	c. check for embezzlement.
	d. monitor reserve requirements.

The liquidity component of the CAMELS rating refers to

Question 27 options:

	a. regulators' concern about how a bank's earnings would change if economic conditions change.
	b. how well the bank's management would detect its own financial problems.
	c. a bank's sensitivity to financial market conditions.
	d. monitoring the type of loans that are given, the bank's process for deciding whether to provide loans, and the credit rating of debt securities that it purchases.
	e. excessive use by banks of purchase funds and other outside sources, such as the discount window.