Question: a. Do banks typically have a positive or negative variable-rate gap (usually defined simply as gap)? Explain your answer by listing common bank assets and
a. Do banks typically have a positive or negative variable-rate gap (usually defined simply as gap)? Explain your answer by listing common bank assets and liabilities, and whether each are typically variable-rate or fixed-rate.
b. Do banks typically have a positive or negative duration gap? Explain your answer by listing common bank assets and liabilities, and whether each typically has long or short durations.
Add please add conclusion at the end of answer:-
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