Question
If ABC Bank is encouraging its home loan borrowers to
shift to a floating rate option, the bank is likely to be _______Solution
By making home loans on floating basis, the bank is increasing it long term rate sensitive assets which would reduce the negative gap between rate sensitive assets and liabilities thereby reducing the liquidity risk for the bank.
More Financial Management Questions
Match the following:
Which Indian state recently became the first to implement a 'Right to Water' law?
- Which of the following crops is cultivated during the monsoon (Kharif) season?
The Ministry of Education's recently launched PM-YUVA 3.0 (Young, Upcoming, and Versatile Authors) scheme mentors young authors below what age?
What is India’s first indigenous aircraft carrier called?
- In economic terminology, what does the acronym 'BoP' represent?
- What is the full form of SLR, an important tool used by RBI to control money supply?
Recently, where was the first Joint Commanders’ Conference (JCC) held?
- Which social reformer worked for the advancement of the Ezhava community in Kerala?
Which technology was used to discover a lost Mayan city in the Mexican jungle?
