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If Second National Bank Has More Rate-Sensitive Assets Than Rate-Sensitive

Question 37

Multiple Choice

If Second National Bank has more rate-sensitive assets than rate-sensitive liabilities,it can reduce interest-rate risk with a swap that requires Second National to


A) pay fixed rate while receiving floating rate.
B) receive fixed rate while paying floating rate.
C) both receive and pay fixed rate.
D) both receive and pay floating rate.

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