According to the gap model

Assignment Help Financial Management

Reference no: EM131930342

1. Which of the following has(have. proven to be important factor(s) in credit scoring models?

Credit Bureau ratings

Income bracket

Home ownership

Number and type of deposit accounts owned

All of the above

2. Assume that total assets are 1,000 rate sensitive assets are 500 and rate sensitive liabilities are 700. Net worth is 80. All data are in millions of dollars. According to the gap (repricing) model, what will happen to net income if interest rates increase by two percentage points?

a. it will increase by two percent

b. it will decrease by two percent

c. it will increase by $4 million

d. it will decrease by $4 million

e. cannot determine without more information

Reference no: EM131930342

Questions Cloud

Differentiate between personal and social barriers : Differentiate between personal and social barriers. List, explain, and give examples of the six barriers to success.

What are your personal hot buttons : What are your personal hot buttons? How do you feel when someone triggers one of your hot buttons? Why?

Structured profit approach with manufacturing operations : Speculate on how VectorCal could possibly use the same structured profit approach with their manufacturing operations.

How can systems transfer be used as control tools : ‘‘Implementers are the most important country organizations in terms of buy-in for a global strategy.'' Comment. How can systems that are built for global.

According to the gap model : According to the gap (repricing) model, what will happen to net income if interest rates increase by two percentage points?

Draw a flowchart showing the experimental process : Draw a flowchart showing the experimental process. How to obtain experimental results? Will you measure temperature on site or simulate the temperature

Define changes in the firm and in the environment : What changes in the firm and/or in the environment might cause a firm to abandon the functional approach?

What is the limitation in using variance as measure of risk : What is the limitation in using variance as measure of risk? Explain this point with an illustration.

Created the possibility of moral hazard for large banks : The "Too big to Fail" policy has created the possibility of a moral hazard for large banks. The cause of this moral hazard is related to:

User Account

All Pages