If a bank expects interest rates to decrease in the coming year, it should:
A) increase its GAP.
B) issue long-term subordinated debt today.
C) increase the rates paid on long-term deposits.
D) issue more variable rate loans.
E) become more liability sensitive.

Question

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The Answer of If a bank expects interest rates to decrease in the coming year, it should:
A) increase its GAP.
B) issue long-term subordinated debt today.
C) increase the rates paid on long-term deposits.
D) issue more variable rate loans.
E) become more liability sensitive.

If a Bank Expects Interest Rates to Decrease in the Coming