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2. Explain the techniques of the following two approaches which may be employed by banks to manage interest rate risk. Must provide examples. a.)
2. Explain the techniques of the following two approaches which may be employed by banks to manage interest rate risk. Must provide examples. a.) gap analysis and (5) b.) interest rate swaps (5)
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a Gap Analysis Gap analysis is a technique used by banks to measure and manage interest rate risk by analyzing the difference or gap between the ratesensitive assets and ratesensitive liabilities The ...
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
6th Edition
1260226786, 9781260226782
