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Suppose that you are the president of a bank. One of your managers has suggested to you that the bank more aggressively market variable rate

Suppose that you are the president of a bank. One of your managers has suggested to you that the bank more aggressively market variable rate mortgages.

A. What would be the effect of such a strategy on your bank's fund's GAP?

B. Would you expect mortgage default rates for your mortgage loans to rise or fall if the strategy suggested to you by your manager were adopted? Explain.

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