If a Banker Expects Interest Rates to Fall in the Future,her

question 95

Multiple Choice

If a banker expects interest rates to fall in the future,her best strategy for the present is

• A)to increase the duration of the bank's liabilities.
• B)to buy short-term bonds.
• C)to sell long-term certificates of deposit.
• D)to increase the duration of the bank's assets.

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Definitions:

Interpersonal Attraction

The attraction between people which leads to friendships and romantic relationships, influenced by physical appearance, similarity, and other factors.

Overjustification Effect

The decrease in intrinsic motivation to perform an activity when external incentives are given, especially if the incentives are perceived as excessive.

Social Loafing

The occurrence in which a person contributes less towards a common objective while working in a team than they do when working independently.

Homeostasis

Homeostasis is the process by which living organisms regulate their internal environment to maintain a stable, constant condition in response to changes in the external environment.