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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.


Definitions:

Accommodation

In psychology, the process of modifying cognitive schemas to incorporate new information.

Existing Theories

The body of current hypotheses, ideas, and concepts that explain phenomena in a particular field of study.

Accommodation

In cognitive development, the process of altering one's existing schemas, or ideas, as a result of new information or experiences.

Assimilation

The process by which a person or a group's language and/or culture come to resemble those of another group.

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