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:

Dirty Work

Tasks that are considered unpleasant, morally ambiguous, or socially degrading but necessary within a societal or organizational context.

Punishing

The act of imposing a penalty or sanction on someone as a response to their unacceptable behavior or actions.

Policing

The enforcement of laws, the prevention, detection, and investigation of crime, and the maintenance of public order.

Stereotypes

Oversimplified generalized ideas or perceptions about members of a group that can lead to misconceptions and discriminatory behaviors.