If a Bank Expects Interest Rates to Consistently ____ Over

question 40

Multiple Choice

If a bank expects interest rates to consistently ____ over time, it will consider allocating most funds to rate-____ assets.

• A)decrease; sensitive
• B)decrease; insensitive
• C)increase; insensitive
• D)None of these are correct.

Understand how to calculate tax rates based on total assessed valuation and the amount to be raised by taxation.

Compute the total cost of purchases including state sales tax.

Determine the effect of changes in sales tax rates on the final price of items across different states.

Understand the relationship between assessed valuation, market value, and tax rates for property taxation.

---

Definitions:

Expenses Categories

The classification of expenditure that a business or individual incurs, organized into groups for financial tracking, analysis, and reporting.

Manufacturing

The process of producing goods and products in large quantities, often using machinery and in factories.

Contribution Margin

The amount by which sales revenue exceeds variable costs, indicating the contributing profit before fixed costs are deducted.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value over time.