One way for a bank to reduce interest rate risk is by making
A) long-term, fixed-rate loans while issuing short-term, variable-rate liabilities.
B) short-term, variable-rate loans, while issuing long-term, fixed-rate liabilities.
C) long-term, adjustable-rate loans while issuing short-term, variable-rate liabilities.
D) short-term, fixed-rate loans while issuing long-term, variable-rate liabilities.
Correct Answer:
Verified
Q41: Which banks have the largest assets?
A)national banks
B)state
Q42: If liabilities exceed the value of assets,
Q43: The most important task of a bank's
Q44: An adjustable rate loan
A)can be used by
Q45: An adjustable rate loan
A)can be used by
Q47: One problem with variable-rate loans is that
Q48: The problem of using borrowed funds for
Q49: Which of the following may be true
Q50: Which of the following is false?
A)In 2007-2008,
Q51: Which of the following is false?
A)Almost all
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