If bank manager expects interest rates to fall in future

Reference no: EM13393834

Briefly explain whether you agree with the following statements:

a. " A bank that expects interest rates to increase in the future will want to hold more of rate -sensitive assets and fewer rate- sensitive liabilities"

b. "A bank that expects interest rates to decrease in the future will want the duration of its assets to be greater than the duration of its liabilities"

c. "If the bank manager expects interest rates to fall in the future, the manager should increase the duration of the bank's liabilities"

Reference no: EM13393834

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