Suppose that a commercial bank has a positive maturity gap


Suppose that a commercial bank has a positive Maturity Gap. In order to reduce the risk of exposure to possible interest rate increases, according to the Maturity Model, the bank should: A. leave the maturity gap as is B. increase the maturity of its assets while holding the maturity of liabilities constant C. reduce the maturity of its assets relative to the maturity of its liabilities D. none of the above

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Financial Management: Suppose that a commercial bank has a positive maturity gap
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