If a Bank Has ________ Rate-Sensitive Assets Than Liabilities,a ________

question 72

Multiple Choice

If a bank has ________ rate-sensitive assets than liabilities,a ________ in interest rates will reduce bank profits,while a ________ in interest rates will raise bank profits.

• A)more;rise;decline
• B)more;decline;rise
• C)fewer;decline;decline
• D)fewer;rise;rise

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Definitions:

Book Value

The net value of a company's assets as shown on its balance sheet, calculated as total assets minus intangible assets and liabilities.

Equity Method

An accounting technique used to record an investment in another company, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the net profit or loss of the investee.

Net Income

The total earnings of a company after subtracting all expenses from revenues, also known as the bottom line.

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the investee's net income or loss.