12/10/23, 6:46 PM Self-Quiz Unit 4: Attempt review | Home

Started on Sunday, 10 December 2023, 10:41 AM

State Finished
Completed on Sunday, 10 December 2023, 10:46 AM
Time taken 5 mins 25 secs
Marks 5.00/5.00
Grade 10.00 out of 10.00 (100%)

Question 1
Correct
Mark 1.00 out of 1.00

If interest rates increase 3% and the average duration of a bank’s $100 million in assets is 4 years, the value of those assets will fall by:

Select one:
a. $3.000.000
b. $4.000.000
c. $1.000.000
d. $12.000.000 

Question 2
Correct
Mark 1.00 out of 1.00

True or False? A basic interest rate risk reduction strategy when interest rates are expected to fall is to keep the duration of liabilities
long and the duration of assets short.

Select one:
True
False 

Question 3
Correct
Mark 1.00 out of 1.00

True or False? Banks issue short term liabilities but buy long term assets.

Select one:
True 
False

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12/10/23, 6:46 PM Self-Quiz Unit 4: Attempt review | Home

Question 4
Correct
Mark 1.00 out of 1.00

Which of the following is correct?

Select one:
a. Assets=Liabilities - Equity
b. Liability= Assets + Equity
c. Assets = Liabilities + Equity 

Question 5
Correct
Mark 1.00 out of 1.00

If the value of its risk-sensitive assets exceeded that of its liabilities, the bank would profit from the interest rate.

Select one:
a. Increases 
b. Decreases

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