ABC Bank Ltd has extended a Rs.10 crore loan at 5% over the repo rate. The loan is to be repaid in equal quarterly instalments. The bank’s funding of the loan is to be done by 5 years deposit, interest rate on it being 6.5%. Which of the following risk associated with this transaction can lead to variation in the bank’s net interest income in one year?
Repricing risk is the risk of changes in interest rate charged (earned) at the time a financial contract's rate is reset . Here the interest on the loan extended (asset) is variable while that on the deposits (liability) is fixed. Any change in the interest rate will impact the net interest income by repricing of the loan of the bank and changing the net spread between interest earned and interest paid.
Which one of the following chromosomes has a mismatched pair in a normal human male?
Which of the following schedule concerns about “unfair labour practices”?
A gave 40% of amount to B. B gave 20% of amount received from A to C. If amount received by C from B is Rs.180, then find the amount received by B from A.
When two ice cubes are pressed together, they join to form one cube. Which one of the following helps to hold them together?
Which of the following is not an advantage of accounting standards?
Match List-I (Commission/Commitee) with List-II (Chairman) and select the correct answer using the code given below the lists:
A seller marked his article 70% above the cost price and sold it after offering two successive discounts of 60% and 25% respectively. In the whole trans...
When are current liabilities payable?
The UN Convention on the Law of the Sea (UNCLOS) came into existence?
Three containers have their volumes in the ratio 3: 4: 5. They are full of mixtures of milk and water. The mixtures contain milk and water in the ratio...
