1. The "repricing gap" model focuses on changes in the ____________ of a bank

Select one:

a. market value of assets

b. market value of liabilities

c. interest income and interest expense

d. non-interest expenses

e. a and b

2. A "rate sensitive liability" in a one-year maturity bucket represents the amount of liabilities that __________________ within one year.

Select one:

a. may mature

b. may have adjustable interest rates

c. will not be rolled

d. a and b

e. all of the above

3. National Bank is experiencing an unexpected and large number of requests for funds under existing loan commitments. This is the essence of:

Select one:

a. asset side liquidity risk

b. credit risk

c. net deposit drain

d. liability side liquidity risk

e. c and d