Answer:
The correct option is (c). prefer to invest in variable rate assets
Explanation:
According to the given scenario, in the case when the asset of the bank has the maturity and i.e. longer than the liabilities maturity also at the same time it wants to limit the risk of the rate of the interest so here the bank would prefer to invest in the asset i.e. variable rate as it represents a frontier that limits the risk of the rate of interest for the bank
Therfore the correct option is (c)
