If a Bank Has Long-Term Fixed-Rate Assets and Short-Term Liabilities

question 9

Multiple Choice

If a bank has long-term fixed-rate assets and short-term liabilities, and interest rates increase over time, its net interest margin should

• A) decrease
• B) increase
• C) stay the same.
• D) either A or B, depending on whether the asset maturities exceed 10 years

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Definitions:

Psychopathology

The scientific study of mental disorders, including their symptoms, etiology (i.e., their causes), and treatment.

Eclectic Approach

An eclectic approach in therapy involves integrating various therapeutic tools and approaches based on the client's individual needs, rather than adhering to one particular method or theory.

Psychotherapy

The treatment of mental disorder by psychological rather than medical means, involving conversations and interactions between a therapist and a client.

Hawthorne Effect

The alteration of behavior by the subjects of a study due to their awareness of being observed.