If a Bank Has Short-Term Deposits and Provides Long-Term Fixed-Rate

question 16

Multiple Choice

If a bank has short-term deposits and provides long-term fixed-rate loans, and interest rates decline over time, its net interest margin should be

• A)declining over time.
• B)rising over time.
• C)constant over time.
• D)consistently negative.

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Definitions:

Void

A keyword in several programming languages indicating that a function does not return a value.

Nest One Function

Involves placing or calling one function inside another within a program, a technique used to organize and reuse code effectively.

Independent Entity

An object or component that does not depend on other objects for its definition, operation, or existence in a system or model.

Function Definition

The segment of code that specifies what a function does, including its name, parameters, and the body of code it executes.