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Concerning about the interest income, a bank manager who expects interest rates to rise knows the bank currently has a positive gap should ____ rate-sensitive
Concerning about the interest income, a bank manager who expects interest rates to rise knows the bank currently has a positive gap should ____ rate-sensitive asset and ____ rate-sensitive liabilities. Hint: increment NII equals left parenthesis IS space gap right parenthesis cross times left parenthesis increment straight R right parenthesis
Decrease; increase
Decrease; decrease
Increase; increase
Increase; decrease
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