If a Bank Has More Rate-Sensitive Assets Than Rate-Sensitive Liabilities

question 43

Multiple Choice

If a bank has more rate-sensitive assets than rate-sensitive liabilities

• A)it reduces interest rate risk by swapping rate-sensitive income for fixed rate income.
• B)it reduces interest rate risk by swapping fixed rate income for rate-sensitive income.
• C)it increases interest rate risk by swapping rate-sensitive income for fixed rate income.
• D)it neutralizes interest rate risk by receiving and paying fixed-rate streams.

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ELMS System

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80/20 Principle

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FAB Closing

A sales technique that emphasizes the Features, Advantages, and Benefits of a product or service during the closing phase of a sales pitch.

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