Since Most Banks Have Positive Gaps and Negative Duration Gaps,an

question 14

Multiple Choice

Since most banks have positive gaps and negative duration gaps,an increase in market interest rates will

• A) increase bank profits and increase bank capital.
• B) increase bank profits and decrease bank capital.
• C) decrease bank profits and increase bank capital.
• D) decrease bank profits and decrease bank capital.

---

Definitions:

Protozoans

Single-celled eukaryotic organisms, often parasitic and capable of movement, that belong to the kingdom Protista.

Infestation

The presence of a large number of pests or parasites in a particular area or on a host, causing damage or disease.

Outbreak

The sudden start or increase of a disease or illness in a specific area or among a specific group of people.

Pandemic

An outbreak of a disease that occurs over a wide geographic area and affects an exceptionally high proportion of the population.