How to increase returns of bank

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To increase its return, a bank that expects interest rates to fall will:

A:Want the duration of its assets to be greater than the duration of its liabilities - a positive duration gap.

B:Want the duration of its assets to be less than the duration of its liabilities - a positive duration gap.

C:Want the duration of its assets to be greater than the duration of its liabilities - a negative duration gap.

D:Want the duration of its assets to be less than the duration of its liabilities - a negative duration gap.

Reference no: EM13173393

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