If a bank has more rate-sensitive assets than rate-sensitive liabilities

A) it reduces interest rate risk by swapping rate-sensitive income for fixed rate income.
B) it reduces interest rate risk by swapping fixed rate income for rate-sensitive income.
C) it increases interest rate risk by swapping rate-sensitive income for fixed rate income.
D) it neutralizes interest rate risk by receiving and paying fixed-rate streams.


A

Economics

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