Durango Bank Has $2 Million in Rate-Sensitive Liabilities and $3

question 45

Multiple Choice

Durango Bank has $2 million in rate-sensitive liabilities and $3 million in rate-sensitive assets. Durango's gap is ____, and Durango is probably more concerned about a(n) ____ in interest rates.

• A)- $1 million; increase
• B)- $1 million; decrease
• C)$1 million; increase
• D)$1 million; decrease
• E)None of these are correct.

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Definitions:

Cognitive Processes

The mental actions or processes involved in acquiring knowledge and understanding through thought, experience, and the senses.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex, often examined within social psychology and sociology.

Generalization

A principle in psychology that refers to the tendency of a response that is learned to one stimulus to be elicited by similar but distinct stimuli.

Unconditioned Response

An innate, automatic response to a stimulus that happens spontaneously, without the need for prior learning or conditioning.