A Positive Gap Implies That an Increase in Interest Rates

question 89

Multiple Choice

A positive gap implies that an increase in interest rates will cause _______ in net interest income.

• A)no change
• B)a decrease
• C)an increase
• D)an unpredictable change
• E)Either no change or a decrease.

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Definitions:

Peasants

Members of the lowest class in some social class systems, typically working in agriculture and often living under the control of or obligation to a higher class.

Independence

The state of being self-governing and free from external control or influence, often related to nations achieving sovereignty from colonial rule.

Sweden

A Scandinavian country in Northern Europe, known for its advanced welfare state, rich cultural heritage, and extensive natural landscapes.

Nobles

Members of the highest social class in some societies, typically holding hereditary titles and offices.