Question: If a bank has a positive duration gap, the value of its equity is expected to: A ) decline if interest rates go up B
If a bank has a positive duration gap, the value of its equity is expected to:
A decline if interest rates go up
B remain unchanged if interest rates go up
C increase if interest rates go up
D duration gap has no relation to the change in a bank's equity position
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
