Which of the Following Statements Is NOT Correct? If the Yield

question 25

Multiple Choice

Which of the following statements is NOT correct? If the yield curve is near the top of the business cycle and is downward sloping,financial institutions:

• A)will typically try to shorten the maturity of their liabilities.
• B)will try to lengthen the maturity of their fixed rate loans.
• C)want to be able to borrow at lower cost in the future.
• D)will try to increase the share of variable rate loans in their portfolio.

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