Bruce the Bank Manager Can Reduce Interest Rate Risk by ________

question 39

Multiple Choice

Bruce the Bank Manager can reduce interest rate risk by ________ the duration of the bank's assets to increase their rate sensitivity or,alternatively,________ the duration of the bank's liabilities.

• A)shortening;lengthening
• B)shortening;shortening
• C)lengthening;lengthening
• D)lengthening;shortening

---

Definitions:

Company's Commitment

The dedication and loyalty a company demonstrates towards its goals, employees, and ethical standards.

Policy

A deliberate system of principles to guide decisions and achieve rational outcomes in an organization or government.

Organizing

Organizing divides up tasks and arranges resources to accomplish them.

Controlling

Controlling, in management, involves monitoring performance, comparing it with goals, and taking corrective action as needed to ensure achievement of objectives.