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    Exam 20: Risk Management in Financial Institutions
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    A Bank Has a Negative $GAP
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A Bank Has a Negative $GAP

Question 2

Question 2

Multiple Choice

A bank has a negative $GAP. If interest rates fall the bank's overall NII will


A) fall.
B) rise.
C) not change.
D) not change unless the duration gap is also negative.

Correct Answer:

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