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76. If a bank has a positive gap, that is, if it is asset sensitive, the bank can hedge its interest-rate risk by which of

76.

If a bank has a positive gap, that is, if it is asset sensitive, the bank can hedge its interest-rate risk by which of the following activities?

A.

Reducing maturities of its assets

B.

Reducing maturities of its liabilities

C.

Using a long hedge

D.

All of the options are correct

E.

Reducing maturities of its assets and liabilities

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