Which of the following is NOT an interest-sensitive asset for a six-month planning period?
A) Floating rate mortgages
B) Securities with a maturity of less than 90 days
C) Fixed-rate mortgages
D) A 181-day negotiable certificate of deposit

Question

Quizplus · Accepted Answer

Fixed-rate mortgages are not interest-sensitive assets for a six-month planning period because the interest rate is fixed and does not fluctuate with changes in the market interest rate. The other options listed (A, B, and D) are all interest-sensitive assets because their interest rates are tied to the market rate and can change during a six-month planning period.

Which of the Following Is NOT an Interest-Sensitive Asset for a Six-Month