Bank Capital Will Decline Following an Increase in Interest Rates

question 139

Multiple Choice

Bank capital will decline following an increase in interest rates if the value of its

• A) fixed-rate assets is greater than the value of its fixed-rate liabilities.
• B) fixed-rate assets is less than the value of its fixed-rate liabilities.
• C) fixed-rate assets is greater than the value of its variable-rate assets.
• D) fixed-rate liabilities is greater than the value of its variable-rate liabilities.

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Definitions:

RAD

Rapid Application Development, a software development methodology that emphasizes quick prototype releases and iterations to expedite development and elicit early user feedback.

Prototypes

Preliminary models of products or systems used for testing and evaluation during the development process.

End-user Development

The practice allowing non-programmers to create or modify software applications to meet their personal or business needs without extensive knowledge of programming.

Security

The degree of protection against criminal activity, danger, damage, or loss.