ACI
3I0-012 · Question #421
A bank expects interest rates to fall with a parallel downward shift in the yield curve. What action should the bank take, if it wants to benefit from this view?
The correct answer is D. lengthen the maturity of its asset portfolio. See the full explanation below for the reasoning.
Question
A bank expects interest rates to fall with a parallel downward shift in the yield curve. What action should the bank take, if it wants to benefit from this view?
Options
- Aincrease the maturity of its liabilities
- Breduce the maturity of its asset portfolio
- Crunazerogap
- Dlengthen the maturity of its asset portfolio
How the community answered
(37 responses)- A3% (1)
- B11% (4)
- C3% (1)
- D84% (31)
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