Which of the following is an appropriate change to make on a banks balance sheet when GAP

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Which of the following is an appropriate change to make on a bank’s balance sheet when GAP is negative, spread is expected to remain unchanged, and interest rates are expected to rise?

a. Replace fixed-rate loans with rate-sensitive loans.

b. Replace marketable securities with fixed-rate loans.

c. Replace fixed-rate CDs with rate-sensitive CDs.

d. Replace equity with demand deposits.

e. Replace vault cash with marketable securities.

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Financial Institutions Management A Risk Management Approach

ISBN: 9781266138225

11th International Edition

Authors: Anthony Saunders, Marcia Millon Cornett, Otgo Erhemjamts

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Question Posted: Jun 04, 2024 01:09 AM

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Which of the following is an appropriate change to make on a banks balance sheet when GAP

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Financial Institutions Management A Risk Management Approach

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