Question

Net interest position of the bank has which of the following characteristics?

A if the bank has more interest earning assets than the liabilities on which it pays interest, the bank is exposed to an additional interest rate risk
B It arises when interest rate earned on assets changes while the cost of funding of the liabilities remained the same
C A large positive net interest position accounts for most of the profit generated by many financial institutions
D A and B
E A, B and C
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