A Bank Is Liability Sensitive,if Its

question 28

Multiple Choice

A bank is liability sensitive,if its:

• A)deposits and non-deposit borrowings are not 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)loans and securities are affected by changes in interest rates.
• E)None of the options is correct.

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Definitions:

Values

The principles or standards of behavior that are regarded as important and desirable in life by an individual or society.

Conscientiousness

A personality trait characterized by diligence, carefulness, and a desire to do a task well.

Big Five

A model describing human personality through five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Personality Traits

Enduring characteristics that describe an individual's behavior.