If Bank a Has a Negative Gap and Bank B

question 4

Multiple Choice

If Bank A has a negative gap and Bank B has a positive gap, which of the following is true?

• A) Bank A is more favorably affected by rising interest rates.
• B) Bank B is more favorably affected by falling interest rates.
• C) Bank A is adversely affected by falling interest rates.
• D) none of the above

---

Definitions:

Nasal Congestion

The blockage or swelling of nasal passages due to excess mucus or inflamed blood vessels, often associated with colds or allergies.

Persistent Dry

A condition or sensation often described in medical or health contexts, indicating ongoing dryness in a certain area, such as the throat or skin without specific moisture.

Productive Cough

A cough that is accompanied by the expectoration of phlegm or mucus from the respiratory tract.

Upper Respiratory Tract Infection

An infection in the upper part of the respiratory system, such as the throat, nose, and airways, common examples include the common cold and sinusitis.