Question: Question 7 2 points Let us say a bank that relies on short term deposits as it's primary source of funds expects interest rates to

 Question 7 2 points Let us say a bank that relies

Question 7 2 points Let us say a bank that relies on short term deposits as it's primary source of funds expects interest rates to consistently decrease over time. This bank would allocate rates on most of it's loans if it desires to maximize it's expected returns. This bank could reduce it's exposure to interest rate risk by setting rates on its loans fixed: fixed variable Pred variable: variable fed variable

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