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1. What is it that a bank wishes to protect from adverse movements in interest rates? What is the goal of hedging in banking? What

1. What is it that a bank wishes to protect from adverse movements in interest rates?

What is the goal of hedging in banking?

What is the concept of gap management?

How is a bank's duration gap determined?

What are the advantages of using duration as an asset-liability management tool as opposed to interest-sensitive gap analysis?

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