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If a Bank Has a Gap of -$10 Million,it Can

Question 110

Multiple Choice

If a bank has a gap of -$10 million,it can reduce its interest-rate risk by


A) paying a fixed rate on $10 million and receiving a floating rate on $10 million.
B) paying a floating rate on $10 million and receiving a fixed rate on $10 million.
C) selling $20 million fixed-rate assets.
D) buying $20 million fixed-rate assets.

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