A Bank That Expects Interest Rates to Fall Will

question 33

Multiple Choice

A bank that expects interest rates to fall will

• A)want the duration of its assets to be greater than the duration of its liabilitiesa positive duration gap.
• B)want the duration of its assets to be less than the duration of its liabilitiesa positive duration gap.
• C)want the duration of its assets to be greater than the duration of its liabilitiesa negative duration gap.
• D)want the duration of its assets to be less than the duration of its liabilitiesa negative duration gap.

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Definitions:

Distinctive Features

Characteristics that set an object, concept, or entity apart from others, making it easily identifiable and unique.

Team-Based Decision Making

A collaborative approach to decision-making where the members of a team collectively make decisions, tapping into diverse perspectives and expertise.

Design Engineers

Professionals who use creativity and technical knowledge to develop new products or improve existing ones.

Constraints

are limitations or restrictions that affect the performance and outcomes of processes, projects, or behaviors.