If the First National Bank Has a Gap Equal to a Negative

question 139

Multiple Choice

If the First National Bank has a gap equal to a negative $30 million,then a 5 percentage point increase in interest rates will cause profits to

• A)increase by $15 million.
• B)increase by $1.5 million.
• C)decline by $15 million.
• D)decline by $1.5 million.

---

Definitions:

International Development

A multidisciplinary field focused on improving the economic, political, and social quality of life for people in developing countries through various means, such as aid and education.

Dependency Theory

A theory that suggests developing countries are kept in a state of economic underdevelopment by the exploitative mechanisms of the global capitalist system.

World Systems Theorists

Scholars who argue that global socio-economic systems and relationships between countries shape individual societies, focusing on how historical and modern economic practices influence global inequality.

Economic System

The method by which countries and governments distribute resources and trade goods and services, including capitalism, socialism, and communism.