If Second Bank Has More Rate-Sensitive Assets Than Rate Sensitive

question 22

Multiple Choice

If Second Bank has more rate-sensitive assets than rate sensitive liabilities, it can reduce interest rate risk with a swap which requires Second Bank to ________.

• A) pay a fixed rate while receiving a floating rate
• B) receive a fixed rate while paying a floating rate
• C) both receive and pay a fixed rate
• D) both receive and pay a floating rate

Achieve proficiency in crafting persuasive requests and messages.

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Definitions:

Abolish Slavery

The act of ending slavery, a system in which individuals are owned by others, denying them personal freedom.

Vermont

A state in the northeastern United States known for its natural landscapes and being the first to abolish adult slavery in its constitution.

Three-Fifths Compromise

A constitutional agreement that each slave would be counted as three-fifths of a person for the purposes of taxation and representation.

Constitution

is the supreme law of a country, outlining the framework for its governance and the rights and duties of its citizens.