In an Interest Rate Swap, a Bank Whose Liabilities Are

question 57

Multiple Choice

In an interest rate swap, a bank whose liabilities are ____ rate sensitive than its assets can swap payments with a ____ interest rate in exchange for payments with a ____ interest rate.

• A)more; fixed; variable
• B)more; variable; fixed
• C)less; fixed; variable
• D)less; fixed; fixed
• E)None of these are correct.

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