A Bank Is Asset-Sensitive If Its

question 12

Multiple Choice

A bank is asset-sensitive if its:

• A)loans and securities are affected by changes in interest rates.
• B)interest-sensitive assets exceed its interest-sensitive liabilities.
• C)interest-sensitive liabilities exceed its interest-sensitive assets.
• D)deposits and borrowings are affected by changes in interest rates.
• E)None of the options is correct.

---

Definitions:

Opposing Points

Refers to viewpoints or arguments that are in direct contrast or opposition to each other.

Best Solution

The most effective and efficient answer or method to solve a problem or address a situation.

Observations

The action or process of closely monitoring or noticing something or someone, often to gather data or information.

Prereflective

Refers to a cognitive state or process that occurs without conscious awareness or reflection.