Expand those discussion questions

Expand those discussion questions

The following are the subject areas for the three discussion questions.
1. Focus of GAP and Duration Gap and which is more inclusive.
2. Major types of funding for a commercial bank. According to Chapter 10 (P365-412)
3. Meeting Legal Reserve Requirements. According to Chapter 11(P413-448)

My teacher will give me three discussion questions in the exam, but he just gave us the main topics. You need to expand those questions and think about what questions he will give in the exam and answer them according to the following book.(min100 words each)

 

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Banking Institution Regulation

Question 1

Interest rate risk is an important concept in finance, in which case one determines the possible changes in interest income relative to the changes in interest cost of liabilities (Koch & MacDonald, 2015). In particular, GAP helps understand the changes in net interest income and net income following changes in the market.

(371 words)

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