Multiple Choice
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.
Correct Answer:

Verified
Correct Answer:
Verified
Q39: Because savings institutions commonly use long-term liabilities
Q40: Credit unions obtain most of their funds
Q41: Because credit unions _ stock, they are
Q42: Credit unions use the majority of their
Q43: Which of the following is true about
Q45: Savings institutions commonly measure the gap between
Q46: Credit unions obtain most of their funds
Q47: A savings institution owned by its depositors
Q48: To manage interest rate risk, a savings
Q49: According to your text, about _ percent