An FI's Balance Sheet Is Characterized by Long-Term Fixed-Rate Assets

question 48

Multiple Choice

An FI's balance sheet is characterized by long-term fixed-rate assets funded by short-term variable-rate securities. Most likely the bank has a

• A)positive repricing gap and a positive duration gap.
• B)positive repricing gap and a negative duration gap.
• C)negative repricing gap and a positive duration gap.
• D)negative repricing gap and a negative duration gap.

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Definitions:

Approaches

Different methods or perspectives used to understand and study psychological phenomena.

Trained Introspection

A method in psychology where trained observers examine and report on the content of their own thoughts.

Structuralism

An early school of psychology that sought to understand the structure of the mind by analyzing the basic elements of thoughts and sensations.

Psychology

The scientific study of the mind and behavior, examining how individuals think, feel, and act.