For a bank with a positive duration gap,an increase in interest rates will
A) increase the likelihood of insolvency.
B) decrease the likelihood of insolvency.
C) not affect the likelihood of insolvency.
D) result in increased loan trading.
E) None of the options are correct.
Correct Answer:
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Q25: A bank has DA = 2.4 years
Q26: After interest rate and yield curve changes,a
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Q31: A bank has a negative repricing gap
Q32: A bank has DA = 2.4 years
Q33: A bank has a positive repricing gap
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