If a Bank Has $50 Million in Rate-Sensitive Assets and $20

question 105

Multiple Choice

If a bank has $50 million in rate-sensitive assets and $20 million in rate-sensitive liabilities then

• A)an increase in interest rates will reduce bank profits.
• B)a decrease in interest rates will reduce bank profits.
• C)interest rate changes will not impact bank profits.
• D)a decrease in interest rates will increase bank profits.

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Definitions:

Sherman Act

An anti-monopoly U.S. legislation which outlaws monopolistic business practices.

Criminal Prosecutions

Legal proceedings against an individual or entity charged with committing a crime, aiming to enforce the law and provide retribution, deterrence, rehabilitation, or incapacitation.

Market Share

The portion of a market controlled by a particular company or product, typically expressed as a percentage of total sales in a specific industry or sector.

Operating Systems

The software that manages the hardware and software resources of a computer, providing a foundation upon which applications can be run.