Question: If a bank has assets with the same time to maturity as its liabilities, then ( explain why ) a . the interest rate on
If a bank has assets with the same time to maturity as its liabilities, then
explain why
athe interest rate on assets changes faster than the interest rate on liabilities.
bthe interest rate on liabilities changes faster than the interest rate on assets.
cchanges in interest rates will not affect the bank's overall portfolio.
dchanges in interest rates puts the bank at a high risk of default.
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