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Bank assets are called rate sensitive assets. These bank assets are always subject to changes because of the interest rates.
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Are short-term bond prices are more sensitive to interest rate changes than are long-term bond prices?
No, longer term bonds are more sensitive to interest rate changes.
What corporate characteristic causes the rate of return and rate of equity percentage to be different?
The total liabilities because Assets = Liabilities + Owner's Equity. Corporations can borrow money to finance their company, therefore however much you borrow affects assets and owner's equity.
What is equilibrium in a business?
The equilibrium in the business means that the company's after tax profit is at satisfactory level, rate of non performance assets is low, adequate depreciation has been provided for all assets of the company. Over and above, there is huge prospect for future growth of the company.
Why are used goods financial assets and government assets not counted as GDP expenditures?
why goods r not assets
Point elasticity of supply?
The point elasticity of supply is a measure of the rate of response of quantity demand due to a price change. The higher the elasticity, the more sensitive the sellers are to these changes.
What is a gap ratio?
The Gap Ratio is the difference in Rate sensitive Liabilities and Rate sensitive Assets.For Example, If a Bank has $2 Million in Rate sensitive liabilities and $3 Million in Rate sensitive assets, Then its Gap Ratio is 1.5, ($3 Million/$2 Million)
List the basic steps in static GAP analysis.?
There are several basic steps to static GAP analysis. 1. Develop an interest rate forecast. 2. Select a series of sequential time intervals for determining what amount of assets and liabilities are rate sensitive within each time interval. 3. Group assets and liabilities into these time intervals, or "buckets," according to the time until the first repricing. The principal portion of the asset or liability that management expects to reprice is classified as rate sensitive. The effects of any off-balance sheet positions, such as those associated with interest rate swaps, futures, and so on, are also added to the balance sheet position according to whether the item effectively represents a rate-sensitive asset or rate-sensitive liability. 4. Calculate GAP. A bank's static GAP equals the dollar amount of rate-sensitive assets (RSAs) minus the dollar amount of rate-sensitive liabilities (RSLs) for each time interval. 5. Forecast net interest income given the assumed interest rate environment and assumed repricing characteristics of the underlying instruments.
What are the Average Rate of Return ARR?
Average rate of return = Net Income / Average Assets Average assets = (opening assets - closing assets) / 2
What is relationship of asset turnover rate to the rate of return on total assets?
It is the ratio..
Is financial leverage positive if the interest rate on debt is lower than the return on total assets?
If a company's rate of return on total assets is ledd than the rate of return the company pays its creditors you have positive financial leverage.
What are the four amounts used in measuring transactions and events?
currency rate,money circulation,current assets,fixed assets
Respiratory rate is most sensitive to the effects of what ion?
Na+
Are short-term bond prices are more sensitive to interest rate changes than are long-term bond prices?
No, longer term bonds are more sensitive to interest rate changes.
The tendency of the rate earned on stockholders' equity to vary disproportionately from the rate earned on total assets is sometimes referred to as?
Leverage
what is the property tax rate in Pleasanton CA?
Property Tax Rate for Pheasanton, CA is 1.16% of the value of your total assets
The numerator of the rate earned on total assets ratio is equal to?
The numerator of the rate earned on total assets ratio is equal to income before interest. Income, broadly defined, is money received, particularly on a regular basis.
How is the tendency of the rate earned on stockholders' equity to vary disproportionately from the rate earned on total assets is sometimes referred to?
I believe this is known as leverage.
