A.Discuss three factors that affect net interest income.B.What are the objectives of the Basel III liquidity standards?C.Discuss any five principles of bank liquidity risk management.D.What are the major advantages of financial derivatives for managing interest rate risk compared to the traditional gap and duration gap techniques?E.Why is the marginal cost of funds critical in loan pricing?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A.
Discuss three factors that affect net interest income.

B.
What are the objectives of the Basel III liquidity standards?

C.
Discuss any five principles of bank liquidity risk management.

D.
What are the major advantages of financial derivatives for managing interest rate risk compared to the traditional gap and duration gap techniques?

E.
Why is the marginal cost of funds critical in loan pricing?

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