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IIA

IIA-CFSA · Question #257

Interest rate risk arises from differences between the timing of rate changes and the timing of cash flows ( _________ );from changing rate relationships among different yield curves affecting bank…

The correct answer is A. Repricing risk, basic risk, yield curve risk and option risk. See the full explanation below for the reasoning.

Question

Interest rate risk arises from differences between the timing of rate changes and the timing of cash flows ( _________ );from changing rate relationships among different yield curves affecting bank activities ( ____________ ); from changing rate relationship across the spectrum of maturities ( ____________ );and from internet-related options embedded in bank products ( _____________ ). Choose the appropriate set.

Options

  • ARepricing risk, basic risk, yield curve risk and option risk
  • BBasic risk, yield curve risk, option risk and Repricing risk
  • CRepricing risk option risk, yield curve risk, and basic risk

How the community answered

(39 responses)
  • A
    74% (29)
  • B
    18% (7)
  • C
    8% (3)

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