All Else the Same,if a Bank's Liabilities Are More Sensitive

question 60

Multiple Choice

All else the same,if a bank's liabilities are more sensitive to interest rate fluctuations than are its assets,then ________ in interest rates will ________ bank profits.

• A)an increase;increase
• B)an increase;reduce
• C)a decline;reduce
• D)a decline;not affect

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Definitions:

Nervous System

The network of nerve cells and fibers that transmits nerve impulses between parts of the body, overseeing both voluntary and involuntary actions.

Muscles

Tissue in the body composed of fibers that contract to produce movement or maintain posture.

Glands

Organs in the body that secrete hormones or other substances directly into the blood or onto a surface.

Protein Synthesis

The process by which cells build proteins using instructions encoded in genes, involving transcription and translation stages.