Q3. Assume you are the manager of a financial institution. How would you structure your balance sheet using the maturity gap model if you expected interest rates to decrease? Choose the correct option  1. It would depend on the volatility of the market interest rates. 2. It would depend on the FI’s leverage level.   3. It would depend on the financial institution’s current profitability.   4. It would create a negative maturity gap.   5. It would create a positive maturity gap.

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Q3. Assume you are the manager of a financial institution. How would you structure your balance sheet using the maturity gap model if you expected interest rates to decrease?

Choose the correct option 

1. It would depend on the volatility of the market interest rates.

2. It would depend on the FI’s leverage level.
 
3. It would depend on the financial institution’s current profitability.
 
4. It would create a negative maturity gap.
 
5. It would create a positive maturity gap.
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