In a Sensitivity  Analysis Using a Bank's Stock Return, an Interest

question 12

Multiple Choice

In a sensitivity  analysis using a bank's stock return, an interest rate proxy, and market returns, a ____ coefficient for the interest rate variable suggests that the bank's performance is ____ affected by ____ interest rates.

• A)positive; adversely; rising
• B)positive; favorably; declining
• C)negative; adversely; rising
• D)negative; favorably; rising

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Definitions:

Promotes

Encourages or advances the growth, development, or progress of something.

Organophosphate

A class of chemicals, often used as insecticides, that can be toxic to the nervous system by inhibiting essential enzymes.

Insecticide

Chemical substances used to kill insects, playing a critical role in pest control and the prevention of vector-borne diseases.