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If finance companies have liabilities that are more rate sensitive than their assets and want to reduce interest rate risk, they could a. shorten their

If finance companies have liabilities that are more rate sensitive than their assets and want to reduce interest rate risk, they could

a. shorten their average asset life.

b. lengthen their average asset life.

c. shorten the maturity of debt that they issue.

d. make greater use of fixed-rate loans.

answer is A. can someone explain how and why?

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