-What is this bank's interest rate risk exposure, if any?
A)The bank is exposed to decreasing interest rates because it has a negative duration gap of -0.21 years.
B)The bank is exposed to increasing interest rates because it has a negative duration gap of -0.21 years.
C)The bank is exposed to increasing interest rates because it has a positive duration gap of +0.21 years.
D)The bank is exposed to decreasing interest rates because it has a positive duration gap of +0.21 years.
E)The bank is not exposed to interest rate changes since it is running a matched book.

Question

-What is this bank's interest rate risk exposure, if any?
A)The bank is exposed to decreasing interest rates because it has a negative duration gap of -0.21 years. 
B)The bank is exposed to increasing interest rates because it has a negative duration gap of -0.21 years. 
C)The bank is exposed to increasing interest rates because it has a positive duration gap of +0.21 years. 
D)The bank is exposed to decreasing interest rates because it has a positive duration gap of +0.21 years. 
E)The bank is not exposed to interest rate changes since it is running a matched book.

Quizplus · Accepted Answer

The Answer of 
-What is this bank's interest rate risk exposure, if any?
A)The bank is exposed to decreasing interest rates because it has a negative duration gap of -0.21 years. 
B)The bank is exposed to increasing interest rates because it has a negative duration gap of -0.21 years. 
C)The bank is exposed to increasing interest rates because it has a positive duration gap of +0.21 years. 
D)The bank is exposed to decreasing interest rates because it has a positive duration gap of +0.21 years. 
E)The bank is not exposed to interest rate changes since it is running a matched book.

-What Is This Bank's Interest Rate Risk Exposure, If Any