Bank Some Risk has a negative GAP in the 3-month time bucket. Which of the...
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Bank Some Risk has a negative GAP in the 3-month time bucket. Which of the following measures would help reduce the banks exposure to interest rate risk during this period?
| a.Buy 5-year maturity securities and finance them with 3-month CDs | |
| b.Pay premium rates to attract short-term deposits and use the money to fund fixed rate mortgages | |
| c.Pay premium rates to attract 3-year certificates of deposit and invest the funds in 3-month Treasury bills | |
| d.All of the above | |
| e.Only a and b |
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