Q. 17 In order to achieve a zero leverage adjusted duration gap, a financial institution with negative leverage adjusted duration gap (DA-kDL<0) can increase the duration of the asset portfolio by MCQ- choose the correct option  Issuing long term bonds   Selling long term bonds in the asset portfolio, replace them with short term bonds   Using securitisation to take high duration mortgage loans off the balance sheet   Issuing short term bonds   Selling short term bonds in the asset portfolio, replace them with long term bonds

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Liquidity Risk Exposure

Answer: c