The term 'rate-sensitive assets' refers to assets:
A)whose interest rate will be repriced over some future period
B)with a particularly high interest rate
C)with a particularly low interest rate
D)for which demand is highly dependent on the level of interest rates

Question

Quizplus · Accepted Answer

Rate-sensitive assets are those whose interest rates will be repriced over some future period. These assets include bonds, loans, and other fixed-income securities that have maturities or re-pricing dates that are going to come up in the near future. These assets are particularly sensitive to changes in interest rates, and as such, their value can fluctuate significantly as interest rates rise or fall.

The Term 'Rate-Sensitive Assets' Refers to Assets