Whether you agree with the given statements

Reference no: EM131305052

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 rate-sensitive assets and fewer rate-sensitive liabilities."

b. "A bank that expects interests to fall will want the duration of its assets to be greater than the duration of its liabilities-a positive duration gap."

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

Reference no: EM131305052

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