Rate-sensitive liabilities and rate sensitive assets

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Reference no: EM131900631

1. Wyoming Bank has $2 million in rate-sensitive liabilities and $3 million in rate sensitive assets. Durango's gap is____, and Durango is probably more concerned about a(n) ____ in interest rates.

a. -$1 million; increase

b. -$1 million; decrease

c. $1 million; increase`

d. $1 million; decrease

2. If interest rates ____, banks with ____ duration gaps will be ____ affected.

a. rise; positive; positively

b. rise; positive; adversely

c. decrease; positive; adversely

d. decrease; negative; positively

Reference no: EM131900631

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