nataliamontirl8034 nataliamontirl8034

28-08-2020
Business

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when banker expects a rise in interest rates in the fututre then the best strategy for the present is

Respuesta :

hopemichael95 hopemichael95

31-08-2020

Answer:

Increase duration of the bank assets

Explanation:

Because When the duration of assets is longer than the duration of liabilities, this allows for a the duration gap is positive. And so even if interest rates rise, assets will lose more value than liabilities, hence reducing the value of the firm's equity.

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