For Every $100 in Assets, a Bank Has $40 in Interest-Rate

question 44

Multiple Choice

For every $100 in assets, a bank has $40 in interest-rate sensitive assets, and the other $60 in non-interest-rate sensitive assets. The same bank has $50 for every $100 in liabilities in interest-rate sensitive liabilities, the other $50 are in liabilities that are not interest-rate sensitive. If the interest rate on assets increases from 5 to 6 percent, and the interest rate on liabilities increases from 3 to 4 percent, the impact on the bank's profits per $100 of assets will be:

• A) an increase of $0.10.
• B) a decrease of $0.10.
• C) a reduction of $1.00.
• D) zero since the interest rates on assets and liabilities increased by the same amount.

Identify and describe the stages and components of emergent norm theory.

Understand the historical use and legislative control of cocaine.

Identify the biological and psychological effects of cocaine use.

Recognize the risks associated with combining cocaine with other substances.

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Definitions:

Correlation

A statistical measure that describes the extent to which two variables change together, but does not imply causation.

Experimenter Bias

A form of bias introduced by the experimenter whose expectations about the outcome of the experiment can be subtly communicated to the participants.

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations of the independent variable.

Dependent Variable

In an experimental setting, the variable being tested and measured, which is expected to change under the influence of the independent variable.