If a Bank's Interest-Sensitive Assets and Liabilities Are Equal,then Its

question 60

True/False

If a bank's interest-sensitive assets and liabilities are equal,then its interest revenues from assets and funding costs from liabilities will change in the same proportion relative to changes in market interest rates.

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Definitions:

Adequate Supply

Refers to a quantity of goods or materials that is sufficient to meet demand or requirements.

Non-necessary Item

A product or service considered not essential for basic living and daily function.

Coat

An outer garment worn outdoors, providing protection from the weather or for fashion purposes; not related to specific legal or financial terminology.

Agent of Necessity

A person who is appointed to act on behalf of another in situations of urgent necessity, without prior authorization from the principal.