If the Interest Rate on a Bank's Liabilities Rises Without

question 76

Multiple Choice

If the interest rate on a bank's liabilities rises without an increase in asset interest rates, the bank's:

• A)equity ratio falls.
• B)return on assets rises.
• C)profits fall.
• D)All of the Answer s are correct.

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Definitions:

Estimate

An approximate calculation or judgment of the value, number, quantity, or extent of something.

Coefficient of Determination

A statistical measure, often denoted as R², that represents the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

Coefficient of Correlation

A numerical metric that determines the intensity and course of a straight-line association between two variables that can be quantified.

Sample Coefficient

A measure that quantifies some kind of property or behavior, such as variability or correlation, from a sample of a population.