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Assume You Are the Manager of an FI

Question 70

Multiple Choice

Assume you are the manager of an FI.How would you structure your balance sheet using the repricing gap model if you expected interest rates to increase?


A) I would create a positive gap.
B) I would create a negative gap.
C) I would create a neutral gap.
D) It would depend on my FI's current profitability.

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