ACI
3I0-012 · Question #122
What is interest rate immunization in the context of bank gap management?
The correct answer is C. reducing the size of the balance sheet. See the full explanation below for the reasoning.
Question
What is interest rate immunization in the context of bank gap management?
Options
- Athe strategy of holding more interest rate sensitive assets than interest rate sensitive liabilities
- Bthe strategy of holding fewer interest rate sensitive assets than interest rate sensitive liabilities
- Creducing the size of the balance sheet
- Dstructuring a bank's portfolio so that its net interest revenue and/or the market value of its portfolio will
How the community answered
(30 responses)- A13% (4)
- B3% (1)
- C77% (23)
- D7% (2)
Community Discussion
No community discussion yet for this question.