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If a Savings Institution's Assets Have a Considerably Longer Duration

Question 44

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If a savings institution's assets have a considerably longer duration than its liabilities, it can reduce its exposure to interest rate risk by


A) reducing its proportion of assets in the short duration categories.
B) increasing its proportion of liabilities in the short duration categories.
C) reducing its proportion of assets in the long duration categories .
D) reducing its proportion of assets in the short duration categories AND increasing its proportion of liabilities in the short duration categories.

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