An FI with a Positive Duration Gap Is Exposed to Interest

question 24

True/False

An FI with a positive duration gap is exposed to interest rate declines and could hedge its interest rate risk by buying forward contracts.

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Definitions:

Stability

The state of being steadfast and not prone to change, which ensures reliability and predictability in processes or systems.

Weighted Point Evaluation

A method used to evaluate and compare suppliers based on certain criteria, where each criterion has a different level of importance or "weight".

Supplier Evaluation Process

A systematic approach to appraising and scoring suppliers based on their performance, reliability, quality, and capability to meet requirements.

Evaluation Criteria

The standards or benchmarks used to assess the quality, performance, or suitability of a product, service, or supplier.