(TCO E & F) A bank is facing a forecast of rising interest rates. How should they set the repricing and duration gap?

A. Positive repricing gap and negative duration gap
B. Negative repricing gap and positive duration gap
C. Positive repricing gap and positive duration gap
D. Negative repricing gap and negative duration gap

The repricing and duration gap can be set likely by :

A. Positive repricing gap and negative duration gap

Explanation:

Here, we can see the mentioned topic is

The forecasting of rising interest rates. So, the bank is facing this issue then they will have to set the values as :

A. Positive repricing gap and negative duration gap

Forecasting of rising interest rates: It is a very tough thing to do. In financial analysis this is one the hardest assumptions that have to be made.

Its prediction in financial analysis is very complicated. This results in the rates to a lower value which results in money of the bank to outflow.

As by forbes for this year it had been predicted that it would not be rising interest rates in 2020.

Even that the growth of economy will be very low and all will be worrying about the inflation.

A high recession will be noticed by us.

This will results in money lending rates to be quite too high.

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explanation:

answer; /// i do believe the correct answer is (possession utility);