An FI with a Positive Duration Gap Is Exposed to Interest

question 24

True/False

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

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Definitions:

Tenantable

Fit to be lived in or leased; a standard that rental property must meet in terms of safety and habitability under the law.

Leased Premises

Property that is rented under the terms of a lease agreement.

Landlord

A landlord is an individual or entity that owns and rents out property, such as apartments or offices, to tenants in exchange for rent.

Writing

The representation of language in a textual medium through the use of set characters.