If a Bank Has ________ Rate-Sensitive Assets Than Liabilities,then ________

question 120

Multiple Choice

If a bank has ________ rate-sensitive assets than liabilities,then ________ in interest rates will increase bank profits.

• A)more;a decline
• B)more;an increase
• C)fewer;an increase
• D)fewer;a surge

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Definitions:

Shareholders

Investors in a corporation, who own the corporation.

Dividends

Payments made by a corporation to its shareholders, usually derived from profits.

Two-Tier Board

A corporate board structure consisting of two separate boards: the supervisory board and the management board, each with distinct responsibilities.

Corporate Veil

A legal concept that separates the personal liability of company owners, shareholders, and officers from that of the corporation itself.