Banks and Other Financial Institutions Can Best Manage Interest Rate

question 18

Multiple Choice

Banks and other financial institutions can best manage interest rate risk by ________.

• A)maximising the duration of assets and minimising the duration of liabilities
• B)minimising the duration of assets and maximising the duration of liabilities
• C)matching the durations of their assets and liabilities
• D)matching the maturities of their assets and liabilities

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Definitions:

Brain Plasticity

The ability of the brain to change and adapt in response to experience, learning, or injury, also known as neuroplasticity.

Cerebral Hemisphere

The cerebral hemispheres are the two halves of the brain, responsible for processing different types of information, with the left side generally managing logical and analytical tasks and the right side handling creativity and spatial abilities.

Surgically Removed

The process of excising or taking out tissue, organs, or growths through operative procedures conducted by medical professionals.

Lateralization

The tendency for certain functions or processes to be more dominant in one hemisphere of the brain than the other.