If a Bank's Liabilities Are More Sensitive to Interest Rate

question 48

Multiple Choice

If a bank's liabilities are more sensitive to interest rate movements than are its assets,then

• A)an increase in interest rates will reduce bank profits.
• B)a decrease in interest rates will reduce bank profits.
• C)interest rates changes will not impact bank profits.
• D)an increase in interest rates will increase bank profits.

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Definitions:

Prospect

A prospect is a potential customer who has been identified as having the interest and ability to purchase a product or service.

Sales Presentation

A promotional talk or pitch aimed at generating interest in a product or service.

Prospect

A potential customer or client who has shown interest in a company's products or services but has not yet made a purchase.

Stalling Objection

A type of resistance shown by potential customers indicating hesitation or delay in making a purchasing decision.