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QUESTION 2 A gap ratio of less than 1 . 0 0 suggests that a . rate - sensitive assets exceed rate - sensitive liabilities.
QUESTION
A gap ratio of less than suggests that
a ratesensitive assets exceed ratesensitive liabilities.
b a decrease in interest rates would decrease the bank's net interest margin
c an increase in interest rates would increase the bank's net interest margin.
d ratesensitive liabilities exceed ratesensitive assets
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