Which of the Following Is an Effective Way to Reduce

question 4

Multiple Choice

Which of the following is an effective way to reduce a thrift's negative maturity GAP?

• A) making more adjustable rate mortgage loans
• B) buying related futures contracts.
• C) borrowing less long-term funds from the FHLB.
• D) raising the rates on short-term CD's.

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Definitions:

Liability

A legal obligation or responsibility for the consequences of one's actions, potentially resulting in payment or other remedies in a legal context.

Capital

Financial assets or resources that individuals or organizations use to fund their operations and invest in their growth.

Competitors' Organization

A structured group or business that competes in the same industry or market as another business.

Shareholders Approval

A formal consent given by shareholders, typically through voting, for certain actions or decisions proposed by a company's management.