A Bank Is Facing a Forecast of Rising Interest Rates

question 46

Multiple Choice

A bank is facing a forecast of rising interest rates. How should it set the repricing and duration gap?

• A)Positive repricing gap and negative duration gap
• B)Negative repricing gap and positive duration gap
• C)Positive repricing gap and positive duration gap
• D)Negative repricing gap and negative duration gap
• E)None of the options are correct.