1. If a bank is uncertain about the movement of interest rates, how might it protect its performance from the future changes in interest rate movements? 2. A public sector bank has more rate sensitive...

1. If a bank is uncertain about the movement of interest rates, how might it protect its performance from the future changes in interest rate movements? 2. A public sector bank has more rate sensitive liabilities than rate sensitive assets. What will happen to its NII in a period of (a) rising interest rates, (b) falling interest rates and (c constant interest rates?