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    Exam 7: Risk Management for Changing Interest Rates: Asset-Liability Management and Duration Techniques
  5. Question
    When a Bank Has a Negative Duration Gap,a Parallel Decrease
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When a Bank Has a Negative Duration Gap,a Parallel Decrease

Question 138

Question 138

Short Answer

When a bank has a negative duration gap,a parallel decrease in the interest rates on the assets and liabilities of the bank will lead to a(n)_________________________ in the bank's net worth.

Correct Answer:

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