If a savings institution's assets have a considerably longer duration than its liabilities, it can reduce its exposure to interest rate risk by
A) reducing its proportion of assets in the short duration categories.
B) increasing its proportion of liabilities in the short duration categories.
C) increasing its proportion of liabilities in the long duration category.
D) A and B

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The Answer of If a savings institution's assets have a considerably longer duration than its liabilities, it can reduce its exposure to interest rate risk by
A) reducing its proportion of assets in the short duration categories.
B) increasing its proportion of liabilities in the short duration categories.
C) increasing its proportion of liabilities in the long duration category.
D) A and B

If a Savings Institution's Assets Have a Considerably Longer Duration