In an Interest Rate Swap, a Bank Whose Liabilities Are

question 40

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 the above

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