If a Bank Has a Gap of -$10 Million,it Can

question 110

Multiple Choice

If a bank has a gap of -$10 million,it can reduce its interest-rate risk by

• A) paying a fixed rate on $10 million and receiving a floating rate on $10 million.
• B) paying a floating rate on $10 million and receiving a fixed rate on $10 million.
• C) selling $20 million fixed-rate assets.
• D) buying $20 million fixed-rate assets.