A Positive Repricing Gap Implies That a Decrease in Interest

question 51

True/False

A positive repricing gap implies that a decrease in interest rates will cause interest expense to decrease more than the decrease in interest income.

---

Definitions:

Checks and Balances

A system in government that ensures no single branch can exert unchecked power, typically through mutual oversight and authority to veto or modify each other's decisions.

Unreasonable Burdens

Obligations or conditions that are excessively oppressive or difficult for an individual or entity to bear.

Judicial Decision

The outcome of a legal case, determined by a judge or a court, which can set a precedent for future similar cases.

Misled Consumers

Practices or statements that intentionally deceive or lead consumers to have incorrect beliefs or understanding about a product or service.