Multiple Choice
If a financial organisation has a positive repricing gap,what happens if managers do not take action when interest rates decline?
A) Interest-sensitive liability costs stabilise
B) Interest-sensitive assets returns decline
C) The rate differential on the repricing gap remains unaffected
D) Expected pre-tax profits will not change, as the cost of interest-sensitive liabilities will decrease
Correct Answer:
Verified
Correct Answer:
Verified
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