23-44 An FI would normally purchase a cap if it was funding fixed-rate assets with variable-rate liabilities.

Name: 23-44 An FI would normally purchase a cap if it was funding fixed-rate assets with variable-rate liabilities.
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This is because the cap would provide protection against an increase in interest rates, which would cause the cost of the liabilities to increase while the income from the assets would remain fixed.

23-44 an FI Would Normally Purchase a Cap If It