A Bank Is Facing a Forecast of Rising Interest Rates

question 14

Multiple Choice

A bank is facing a forecast of rising interest rates. How should it set the repricing and duration gap?

• A)Positive repricing gap and negative duration gap
• B)Negative repricing gap and positive duration gap
• C)Positive repricing gap and positive duration gap
• D)Negative repricing gap and negative duration gap

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Definitions:

Global Corporations

Large companies that operate and provide goods or services in multiple countries beyond their home country.

Transnational Corporations

Large companies that operate and distribute products or services across multiple countries beyond their home base.

International Corporations

Large business entities that operate in multiple countries across the globe, often influencing economic, political, and social landscapes.

Union Negotiations

The process in which representatives of workers (union) and the management discuss and agree upon the work terms, wages, and benefits.