Which of the following financial institutions would be most willing to swap variable-rate payments for fixed-rate payments in order to reduce exposure to interest rate risk?
A)one whose assets and liabilities are equally interest-rate sensitive
B)one whose assets are more interest-rate sensitive than its liabilities
C)one whose liabilities are more interest-rate sensitive than its assets
D)one whose gap ratio is equal to 1.0

Question

Quizplus · Accepted Answer

The Answer of Which of the following financial institutions would be most willing to swap variable-rate payments for fixed-rate payments in order to reduce exposure to interest rate risk?
A)one whose assets and liabilities are equally interest-rate sensitive
B)one whose assets are more interest-rate sensitive than its liabilities
C)one whose liabilities are more interest-rate sensitive than its assets
D)one whose gap ratio is equal to 1.0

Which of the Following Financial Institutions Would Be Most Willing