In a bank's three-month maturity bucket,a 30-year ARM with a rate reset in six months would be considered a fixed-rate asset,but in its one-year maturity bucket,this ARM would be considered a rate-sensitive asset.

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Quizplus · Accepted Answer

The classification of the ARM (Adjustable Rate Mortgage) as a fixed-rate asset in the three-month maturity bucket is due to its fixed interest rate until the reset in six months. However, in the one-year maturity bucket, it is considered rate-sensitive because the interest rate will adjust within that time frame, affecting its interest rate risk profile.

In a Bank's Three-Month Maturity Bucket,a 30-Year ARM with a Rate