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3 years ago

(TCO E & F) A bank is facing a forecast of rising interest rates. How should they set the repricing and duration gap?

Business

1 answer:

Aleonysh [2.5K]3 years ago

5 0

Answer:

The repricing and duration gap can be set likely by :

A. Positive repricing gap and negative duration gap

Explanation:

Here, we can see the mentioned topic is

The forecasting of rising interest rates. So, the bank is facing this issue then they will have to set the values as :

A. Positive repricing gap and negative duration gap

Forecasting of rising interest rates: It is a very tough thing to do. In financial analysis this is one the hardest assumptions that have to be made.

Its prediction in financial analysis is very complicated. This results in the rates to a lower value which results in money of the bank to outflow.

As by forbes for this year it had been predicted that it would not be rising interest rates in 2020.

Even that the growth of economy will be very low and all will be worrying about the inflation.

A high recession will be noticed by us.

This will results in money lending rates to be quite too high.

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For the past five years, the RS Company has produced and sold electronic magnets to chemistry labs throughout the United States.

mezya [45]

Answer:

Explanation:

For a cost to be relevant it has to be futuristic and not past

A relevant cost can be said to be a cost or costs that will be incurred as a result of a particular make or buy decision, and which will change in the future as a result of that decision.

A) The machinery used to produce the magnet was purchased five-years ago for $500,000.

IRRELEVANT

A relevant cost is a cost or costs that will be incurred as a result of the decision, and which will change in the future as a result of that decision. In this case, the machine has already been bought.

B) Four of the employees who produce magnets would be reassigned to the magnifying glass division.

RELEVANT

A relevant cost is a cost or costs that will be incurred as a result of the decision, and which will change in the future as a result of that decision. In this case, the employees will be reassigned which implies that the cost of their salaries will be a cost to be borne when they employ new hands.

C) The space now used to produce the magnets would be used to eliminate the need to rent warehouse space.

RELEVANT

A relevant cost is a cost or costs that will be incurred as a result of the decision, and which will change in the future as a result of that decision. In this case, the space will be reassigned which implies that the cost of their rent will be a cost not to be saved.

D) Sales volume (units) is estimated to drop by 50% once the competitor becomes fully operational.

RELEVANT

A relevant cost is a cost or costs that will be incurred as a result of the decision, and which will change in the future as a result of that decision. In this case, the revenue will be reduced by 50% which implies that the inflow of sales will be half the original amount going forward. This is futuristic and hence relevant

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3 years ago

Interdepartmental politics is a major problem with __________________ communication.

Mumz [18]

Answer:

Interdepartmental politics is a major problem with horizontal communication.

✘ Create dotted-line relationships to formalize communications.

✔ Establish goals for communication in advance.

✔ Focus communication on achieving a certain task or outcome.

✘ When creating teams, choose people with wide differences in rank within the organization.

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3 years ago

Dave is a close-up magician who is famous for his card tricks. He creates and sells DVDs of his magic tricks. Lately he has been

Katen [24]

Answer:

inbound logistics.

Explanation:

Supply chain management can be defined as the effective and efficient management of the flow of goods and services as well as all of the production processes involved in the transformation of raw materials into finished products that meet the insatiable want and need of the consumers. Generally, the supply chain management involves all the activities associated with planning, execution and supply of finished goods and services to the consumers.

The fundamental principle of supply chain management is the complete collaboration between multiple firms. These multiple firms include a company that is saddled with the responsibility of manufacturing producer), a wholesaler, and a retailer who typically sells the products to the customers or consumers.

Basically, these three (3) firms or individuals are required to collaborate with each other so as to meet the needs of the customers in a timely manner or fashion and at a fair price too.

In this scenario, Dave creates and sells DVDs of his magic tricks.

Lately, Dave has been having some trouble getting his DVDs produced in a timely manner. Thus, of the five (5) primary activities in the value chain, this problem of not producing goods (DVDs) as at when needed by the viewers (end users) is most likely to occur in inbound logistics.

An inbound logistics can be defined as a supply process which relates with receiving, storing or warehousing of raw materials and the distribution of inventory internally.

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3 years ago

Ron,a new associate at Barkley and Sons,is working to cultivate personal relationships with individuals outside of his departmen

scZoUnD [109]

Answer:

B. Personal communication network

Explanation:

Personal communication network -

It refers to the method of establishing new connection or relation with various people, in order to expand his or her network, is referred to as Personal communication network.

The mode of communication can be with some digital gadget, telephone, or word to word communication.

Hence, from the given scenario of the question,

Ron tries to get to know various people, who may help to succeed in future.

As, connection with various people enables the person to get more and more knowledge and experience, thereby showcasing personal communication network.

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3 years ago

Bigbucks Brokerage provided the taxpayer $2,400 in bicycle commuting reimbursement in 2020. How much of that reimbursement, if a

blsea [12.9K]

Answer:

Bigbucks Brokerage

The whole amount of $2,400 must be included in the taxpayer's income.

Explanation:

The Bicycle Commuting Reimbursement in 2020, given under a Bicycle Commuter Tax Benefit program, is taxable as income to the employee. According to the provisions of the Tax Cut and Jobs Act, the restriction placed on the Bicycle Commuter Tax Benefit will expire in 2026. The bicycle commuting reimbursement is a benefit that can only be offered by employers and is regarded as a taxable benefit to the affected employee.

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3 years ago