A.Discuss three factors that affect net interest income.B.What are the objectives of the Basel III liquidity standards?C.Discuss any five principles of bank liquidity risk management.D.What are the major advantages of financial derivatives for managing interest rate risk compared to the traditional gap and duration gap techniques?E.Why is the marginal cost of funds critical in loan pricing?

A.Discuss three factors that affect net interest income.B.What are the objectives of the Basel III liquidity standards?C.Discuss any five principles of bank liquidity risk management.D.What are the major advantages of financial derivatives for managing interest rate risk compared to the traditional gap and duration gap techniques?E.Why is the marginal cost of funds critical in loan pricing?

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments

Section: Chapter Questions

Problem 33RQSC

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