If a Bank Has More Rate-Sensitive Assets Than Rate-Sensitive Liabilities

question 43

Multiple Choice

If a bank has more rate-sensitive assets than rate-sensitive liabilities

• A)it reduces interest rate risk by swapping rate-sensitive income for fixed rate income.
• B)it reduces interest rate risk by swapping fixed rate income for rate-sensitive income.
• C)it increases interest rate risk by swapping rate-sensitive income for fixed rate income.
• D)it neutralizes interest rate risk by receiving and paying fixed-rate streams.

---

Definitions:

Innovation

The act of introducing something new or making improvements to existing products, processes, services, or concepts.

MOOCs

Massive Open Online Courses (MOOCs) are free online courses available for anyone to enroll, offering a wide range of subjects from universities and educational institutions worldwide.

In-Class Learning

An educational approach where teaching and learning occur within a traditional classroom setting, promoting face-to-face interaction between students and teachers.

Limited Geographical

Refers to something that is confined or restricted to a specific geographical area or region.