Question: A bank could reduce asset sensitivity if gap is positive by: A) decreasing its long-term securities as a percentage of total assets B) shortening the

A bank could reduce asset sensitivity if gap is positive by:

A)

 decreasing its long-term securities as a percentage of total assets

B)

 shortening the average maturity of its loans

C)

 replacing variable rate loans with fixed rate loans

D)

 all of the above

E)

 none of the above

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