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.
Statements:
Only Onion are Carrot
No Onion are Radish
No Radish is Coriander
Conclusions:
I. Some Coriander are Carro...
Statements:
Only buses are cars
Only a few buses are trains
No train is a bike
Conclusions:
I. Some cars is being bik...
In each question below are given three statements followed by three conclusions numbered I, II and III. You have to take the two given statements to be...
Statements:
Only a few A is B
No B is C
Only a few C is D
Some D is E
Conclusions:
I). No A is C
...given in the statements is true, even if it appears to be at variance with commonly known facts, decide which of the given conclusions logically follow...
Statements:
Only Doctor are Pilots
Some Doctor are not Lawyer
100% Lawyer are Teacher
Conclusions:
I. Some Lawyer are...
Statement:
I) No water is air
II) Some air are land
III) All land are floor
IV) Some fire are water
Conclusion: ...
Statements-:
Some Sons are daughter.
A few daughters is Mother
Many mothers is father
At most Sons are child.
C...
In each question below are given two statements followed by two conclusions numbered I and II. You have to take the two given statements to be true eve...
Statements:
Only mango is apple.
No orange is a Peach.
Some Peaches are guavas.
Some guavas are mangoes.
Conclusio...
