Question: I chose the option 2 and got it marked wrong. What is the correct answer and why: A bank currently has a zero income gap.
I chose the option and got it marked wrong. What is the correct answer and why:
A bank currently has a zero income gap. The bank manager is concerned about INTEREST INCOME and expects interest rates to RISE. The appropriate strategy is to ratesensitive assets and ratesensitive liabilities.
Question options:
increase; increase
decrease; increase
decrease; decrease
increase; decrease
None of the above
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