SEU Managament Banks Exposure to Different Types of Risks Questions
Description
Q1.What are the different types of risks the banks and other financial institutions are exposed to?
Q2.What are the Asset-Liability Management Strategies? Explain.
Q3.Explain the loanable fund theory of Interest Rate Determination.
Q4.What are the different types of derivatives? Take an example and explain Interest rate swaps.
Q5.Calculate the interest-sensitive GAP (IS GAP) and Relative IS GAP ratio for a financial institution if interest-sensitive assets (ISA) are $100 million and interest-sensitive liabilities (ISL) are $125 million. Is that firm an Asset sensitive? Explain.
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