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A certain financial institution manages its asset and liability position as follows: Liability maturities (in terms of dollar amount) exceed asset maturities by $200MM (Liabilities:

A certain financial institution manages its asset and liability position as follows: Liability maturities (in terms of dollar amount) exceed asset maturities by $200MM (Liabilities: $500MM - Assets: $300MM = $200). Interest rates in general are at historically low levels. In fact, much lower than those the assets already have. 


 Given this scenario, of sensitivity in liability maturities, would this financial institution suffer an erosion in its financial margin?

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