Question
(TCO E & F)A bank has a negative repricing gap and estimates that the spread between RSAs and RSLs will move inversely with interest rates.
(TCO E & F)A bank has a negative repricing gap and estimates that the spread between RSAs and RSLs will move inversely with interest rates. If interest rates increase NII will _____.
rise
fall
necessarily be unchanged
rise, or fall, depending on the size of the spread affect relative to the size of the CGAP effect
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Exchange Rates and International Finance
Authors: Laurence Copeland
6th edition
273786040, 978-0273786047
