A Bank Has a Negative Repricing Gap

question 43

Multiple Choice

A bank has a negative repricing gap. This implies that

• A)some RSAs are financed by fixed-rate liabilities.
• B)some RSLs are financing fixed-rate assets.
• C)some RSAs are financing equity.
• D)the bank has no fixed-rate assets.
• E)None of the options are correct.

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