A Bank Is Facing a Forecast of Rising Interest Rates

question 17

Multiple Choice

A bank is facing a forecast of rising interest rates. How should they 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

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Definitions:

Top Management

The highest level of managers in an organization, responsible for the overall direction and strategy.

Economic Turmoil

A period of significant economic instability characterized by rampant inflation, unemployment, and financial uncertainty.

Vision Statement

A clear and compelling goal that unites an organization's efforts.

Long-term Plan

A long-term plan is a detailed strategic guide designed to help an organization achieve its overarching goals over an extended period, usually spanning several years.