A bank that expects interest rates to fall will
A) want the duration of its assets to be greater than the duration of its liabilities—a positive duration gap.
B) want the duration of its assets to be less than the duration of its liabilities—a positive duration gap.
C) want the duration of its assets to be greater than the duration of its liabilities—a negative duration gap.
D) want the duration of its assets to be less than the duration of its liabilities—a negative duration gap.
A
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Under the gold standard of a century ago, the world's commerce
a. nearly collapsed before the beginning of World War I. b. was at the mercy of gold discoveries. c. grew steadily without interruption from monetary disturbances. d. grew when the gold stock grew slowly, and shrank when gold discoveries increased.
A clear conclusion from offshoring debates and analyses is that:
a. Offshoring increases overall unemployment in the nation from which offshoring takes place. b. Offshoring's main effect is to decrease GDP in the nation from which offshoring takes. c. Offshoring could increase or decrease unemployment in the nation from which it takes place; the result depends on the circumstances. d. Offshoring results in net losses to the global economic community.