If a Bank Has Short-Term Deposits and Provides Long-Term Fixed-Rate

question 16

Multiple Choice

If a bank has short-term deposits and provides long-term fixed-rate loans, and interest rates decline over time, its net interest margin should be

• A)declining over time.
• B)rising over time.
• C)constant over time.
• D)consistently negative.

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Definitions:

Delirium

An acute, often sudden, decline in attention and cognition, manifesting as confusion, which can have multiple causes including illness, medication, or substance intoxication.

False Beliefs

Ideas or thoughts that are not based on reality or evidence, often found in various psychological disorders.

Delusional Disorder

A psychiatric condition marked by persistently held false beliefs that are not influenced by reality, despite evidence to the contrary.

Elderly Person

An individual, typically aged 65 or older, facing the unique health, social, and psychological challenges associated with advanced age, in need of varying degrees of support and care.