1. If a bank has a negative repricing gap, falling interest rates increase profitability. (True or False)
2. If a bank wishes to have a position balance sheet repricing gap and a negative balance sheet duration gap, then the bank should predominantly have short-term rate-sensitive assets funded by long-term fixed-rate liabilities. (True or False)
3. A bank manager would want to set the repricing gap greater than zero when interest rates are expected to rise. (True or False)