The Performance of a Bank That Continually Concentrates on Short-Term

question 11

Multiple Choice

The performance of a bank that continually concentrates on short-term deposits in euros and adjustable-rate dollar loans with equal rate sensitivity is

• A) unaffected if euro interest rates increase and U.S. rates decrease.
• B) unaffected if U.S. interest rates increase and euro interest rates decrease.
• C) adversely affected if euro interest rates increase and U.S. rates decrease.
• D) adversely affected if U.S. interest rates increase and euro rates decrease.
• E) A and B

---

Definitions:

Self-efficacy

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Self-esteem

An individual’s subjective evaluation of their own worth, including beliefs about oneself as well as emotional states.

Self-monitoring

The practice of observing and recording one's own behaviors, thoughts, or emotions to gain self-awareness or modify behavior.

Reactivity

The tendency of individuals to alter their performance or behavior due to the awareness that they are being observed.