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3I0-012 · Question #421

3I0-012 Question #421: Real Exam Question with Answer & Explanation

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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

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