A bank is facing a forecast of rising interest rates. How should it 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
Correct Answer:
Verified
Q1: The "runoff" of fixed-income contracts is itself
Q2: Convexity arises because a fixed-income's price is
Q4: A rate sensitive asset is one that
Q5: The duration gap model is a more
Q6: If a bank has a negative repricing
Q9: A bank has a positive repricing gap
Q11: A bank has a negative duration gap.
Q13: The cash flow from the interest a
Q15: If a bank wishes to have a
Q16: The repricing gap fails to consider how
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents