Bruce the Bank Manager Can Reduce Interest Rate Risk by ________

question 39

Multiple Choice

Bruce the Bank Manager can reduce interest rate risk by ________ the duration of the bank's assets to increase their rate sensitivity or,alternatively,________ the duration of the bank's liabilities.

• A)shortening;lengthening
• B)shortening;shortening
• C)lengthening;lengthening
• D)lengthening;shortening

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Definitions:

Demoted

The act of lowering someone's rank, status, or position, often as a result of performance evaluation or organizational restructuring.

Extinction

The process by which a species, breed, or family of organisms becomes permanently incapable of reproducing and therefore dies out.

Employee Behavior

Refers to the actions and conduct of individuals in a workplace environment.

Decrease

A reduction in size, number, quantity, or extent of something.