Which of the following is an appropriate change to make on a bank's 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: 9780073530758

7th Edition

Authors: Anthony Saunders, Marcia Cornett

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Question Posted: Jul 23, 2024 01:00 PM

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

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Financial Institutions Management A Risk Management Approach

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