Which of the Following Financial Institutions Would Be Most Willing

question 68

Multiple Choice

Which of the following financial institutions would be most willing to swap variable-rate payments for fixed-rate payments in order to reduce exposure to interest rate risk?

• A)one whose assets and liabilities are equally interest-rate sensitive
• B)one whose assets are more interest-rate sensitive than its liabilities
• C)one whose liabilities are more interest-rate sensitive than its assets
• D)one whose gap ratio is equal to 1.0

---

Definitions:

Instrumental Aggression

Hurtful behavior that is intended to get something that another person has.

Retaliation

A form of response aimed at returning harm for harm; often used in contexts of conflict or competition, whether personal, legal, or military.

Antisocial Behavior

Behaviors that damage or disregard the welfare of others, frequently breaking societal norms and regulations.

Deliberately

Done consciously and intentionally; often implying careful thought or planning.