1. The "repricing gap" model focuses on changes in the ____________ of a bank

a. market value of assets

b. market value of liabilities

c. interest income and interest expense

d. non-interest expenses

e. a and b

2. A "rate sensitive liability" in a one-year maturity bucket represents the amount of liabilities that __________________ within one year.

a. may mature

b. may have adjustable interest rates

c. will not be rolled

d. a and b

e. all of the above

3. CSUN National Bank is experiencing an unexpected and large number of requests for funds under existing loan commitments. This is the essence of:

a. asset side liquidity risk

b. credit risk

c. net deposit drain

d.liability side liquidity risk

e. c and d

4. If a bank has to raise liquidity by selling off loans on short notice, the prices on such loan sales would be termed __________ prices.

a. fire-sale

b. maximum liquidity

c. deposit drain

d. face value

e. book value