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Question
If an FI's repricing gap is less than zero, then
A. it is deficient in its required reserves.
B. it is deficient in its capital ratio requirement.
C. its liability costs are more sensitive to changing market interest rates than are its asset yields.
D. its liability costs are less sensitive to changing market interest rates than are its asset yields.
E. the duration of the FI's liabilities exceeds the duration of FI's assets.
Answer
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