During a Period of Rising Interest Rates, a Bank's Net

question 54

Multiple Choice

During a period of rising interest rates, a bank's net interest margin will likely decline if it has a large amount of

• A)rate-sensitive assets and no rate-sensitive liabilities.
• B)rate-sensitive liabilities and no rate-sensitive assets.
• C)loans to technology firms.
• D)real estate loans.

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Definitions:

Interval Schedules

A type of operant conditioning reinforcement schedule where the first response is rewarded only after a specified amount of time has elapsed.

FR 30 Schedule

A fixed-ratio schedule of reinforcement where a specific behavior is rewarded after it has been performed a fixed number of times, in this case, 30 times.

VR 30 Schedule

A variable ratio reinforcement schedule where a response is reinforced, on average, every thirtieth time it is made.

Response Deprivation Theory

A principle that suggests a behavior can become more frequent if it is restricted or prevented below its baseline level of occurrence.