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Which of the Following Statements Is True

Question 8

Multiple Choice

Which of the following statements is true?


A) An FI with a negative repricing gap expects interest rates to remain stable.
B) An FI with a negative repricing gap expects interest rates to rise.
C) An FI with a negative repricing gap expects interest rates to remain fall.
D) An FI with a negative repricing gap has not particular expectations regarding interest rate movements.

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