Sensitive assets and fewer rate-sensitive liabilities

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Briefly explain whether you agree with the following statements: a. “ A bank that expects interest rates to fall in the future will want to hold more of rate -sensitive assets and fewer rate- sensitive liabilities” True or false b. “A bank that expects interest rates to decrease in the future will want the duration of its assets to be greater than the duration of its liabilities”

Reference no: EM131009983

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