An FI with a Negative Duration Gap Is Exposed to Interest

question 118

True/False

An FI with a negative duration gap is exposed to interest rate declines and could hedge its interest rate risk by buying forward contracts.

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Definitions:

Social Networking Sites

Online platforms that enable users to create a profile, connect with friends, and share information.

Facebook

A social networking platform that enables users to create profiles, share photos and videos, send messages, and keep in touch with friends, family, and colleagues.

Speak Slowly

The act of verbal communication at a reduced speed to ensure clarity and understanding by the listener.

Glazed Expression

A look on someone's face that shows lack of interest or understanding, often appearing unfocused or distant.