How should a bank structure its liquid assets portfolio to take advantage of falling interest rates ? a. The bank should invest in short-term securities to minimise capital loss b. The bank should invest in long term securities to maximise capital gains. c. The bank should borrow at fixed interest rates d. The bank should issue certificate deposits with fixed interest rates. e. The bank should hold cash to maximise its interest income. Which option is correct
How should a bank structure its liquid assets portfolio to take advantage of falling interest rates ? a. The bank should invest in short-term securities to minimise capital loss b. The bank should invest in long term securities to maximise capital gains. c. The bank should borrow at fixed interest rates d. The bank should issue certificate deposits with fixed interest rates. e. The bank should hold cash to maximise its interest income. Which option is correct
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 23QTD
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How should a bank structure its liquid assets portfolio to take advantage of falling interest rates ?
a. The bank should invest in short-term securities to minimise capital loss
b. The bank should invest in long term securities to maximise
c. The bank should borrow at fixed interest rates
d. The bank should issue certificate deposits with fixed interest rates.
e. The bank should hold cash to maximise its interest income.
Which option is correct
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