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NEW QUESTION: 1

A. Option A
B. Option C
C. Option E
D. Option B
E. Option D
Answer: A,C

NEW QUESTION: 2
What would be the strategy for a bank if it is unable to speculate on interest rates and/or unable to absorb market risk?
A. to reduce the size of the balance sheet
B. to hold fewer interest rate sensitive assets than interest rate sensitive liabilities
C. to hold more interest rate sensitive assets than interest rate sensitive liabilities
D. to run a zero gap
Answer: D


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