ACI
3I0-012 · Question #383
If the yield curve is upward sloping, a bank would not profit from:
The correct answer is B. borrowing long and lending short. See the full explanation below for the reasoning.
Question
If the yield curve is upward sloping, a bank would not profit from:
Options
- Aborrowing short and lending long
- Bborrowing long and lending short
- Cpaying a higher rate on deposits than the market
- Dincreasing the banks leverage
How the community answered
(43 responses)- A12% (5)
- B79% (34)
- C2% (1)
- D7% (3)
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