Given That Most Banks Have Positive Gap and Negative Durations,banks

question 97

Multiple Choice

Given that most banks have positive gap and negative durations,banks prefer

• A) lower market interest rates.
• B) higher market interest rates.
• C) higher market fixed rates but lower market floating rates.
• D) either higher or lower market interest rates since interest rates have little effect on bank profits.

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Definitions:

Facilitation-Support Strategy

A facilitation-support strategy involves an organization taking proactive steps to support and facilitate the needs and goals of its stakeholders, fostering a positive relationship and enhancing mutual benefits.

Lewin's Planned Organisational Change Model

A framework proposed by Kurt Lewin that outlines change as a three-step process: unfreezing, changing, and refreezing, to facilitate successful organizational change.

Changing Phase

A period or stage in which significant alterations occur within a process, system, or organizational structure.

Changing Phase

The transitional stage in a process, organization, or system where changes are being implemented or are about to occur.