Assume You Are the Manager of an FI

question 70

Multiple Choice

Assume you are the manager of an FI.How would you structure your balance sheet using the repricing gap model if you expected interest rates to increase?

• A)I would create a positive gap.
• B)I would create a negative gap.
• C)I would create a neutral gap.
• D)It would depend on my FI's current profitability.

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Definitions:

Muscular Endurance

The ability of a muscle or group of muscles to sustain repeated contractions or to continue applying force against a fixed object for an extended period of time.

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Book Bag

A bag used for carrying books and other items, often featuring shoulder straps and made from various materials.

FITT Formula

An acronym for Frequency, Intensity, Time, and Type, a principle used in exercise planning to achieve fitness goals.