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Bank has substantial amounts of short-term or variable interest for its liabilities, but its earning assets tend to be longer-term and less variable. Its economic
Bank has substantial amounts of short-term or variable interest for its liabilities, but its earning assets tend to be longer-term and less variable. Its economic position would deteriorate if interest rates _____ should reduce its exposure.
Select one:
a.rise. A pay variable, receive fix swap
b.rise. A pay fix, receive variable swap
c.fall. A pay fix, receive variable swap
d.fall. A pay variable, receive fix swap
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