ACI
3I0-012 · Question #253
What would be the strategy for a bank if it is unable to speculate on interest rates and/or unable to absorb market risk?
The correct answer is A. to run a zero gap. See the full explanation below for the reasoning.
Question
What would be the strategy for a bank if it is unable to speculate on interest rates and/or unable to absorb market risk?
Options
- Ato run a zero gap
- Bto hold more interest rate sensitive assets than interest rate sensitive liabilities
- Cto reduce the size of the balance sheet
- Dto hold fewer interest rate sensitive assets than interest rate sensitive liabilities
How the community answered
(30 responses)- A77% (23)
- B7% (2)
- C13% (4)
- D3% (1)
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