An FI's balance sheet is characterized by long-term fixed-rate assets funded by short-term variable-rate securities. Most likely the bank has a
A) positive repricing gap and a positive duration gap.
B) positive repricing gap and a negative duration gap.
C) negative repricing gap and a positive duration gap.
D) negative repricing gap and a negative duration gap.
Correct Answer:
Verified
Q31: For a bank with a positive duration
Q32: A bank has DA = 2.4 years
Q33: A bank's balance sheet is characterized by
Q34: A bank has DA = 2.4 years
Q35: A bank has a negative repricing gap.
Q37: A bank has a negative duration gap.
Q39: A bank has a positive repricing gap
Q40: With a six-month maturity bucket,a nine-month fixed-rate
Q40: A bank has a positive repricing gap.
Q41: A thrift has an annual CGAP of
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