Question: What does a negative interest-sensitive GAP means for a Bank? It has a greater dollar volume of interest-sensitive liabilities than interest-sensitive assets. It will generate
What does a negative interest-sensitive GAP means for a Bank? It has a greater dollar volume of interest-sensitive liabilities than interest-sensitive assets. It will generate a higher interest margin if interest rates rise. It will generate a lower interest margin if interest rates fall. It has assets and liabilities with the same duration It has liabilities with a greater duration than its assets
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