According to the gap repricing model what will happen to


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

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Financial Management: According to the gap repricing model what will happen to
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