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36 If a bank has an Income Gap of -$10 million, it can reduce its interest-rate risk by paying a fixed rate on $10 million

36
  1. If a bank has an Income Gap of -$10 million, it can reduce its interest-rate risk by
  2. paying a fixed rate on $10 million and receiving a floating rate on $10 million.
  3. paying a floating rate on $10 million and receiving a fixed rate on $10 million.
  4. selling $20 million fixed-rate assets.
  5. buying $20 million fixed-rate assets.

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