Which of the Following Statements Is True

question 55

Multiple Choice

Which of the following statements is true?

• A)A negative gap indicates that a rise in interest rates would lower the bank's net interest income.
• B)A positive gap indicates that a rise in interest rates would lower the bank's net interest income.
• C)A negative gap indicates that a rise in interest rates would increase the bank's net interest income.
• D)None of the listed options are correct.

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Definitions:

System-2

Refers to a mode of thinking in Daniel Kahneman's dual-process theory, characterized by more deliberate, effortful, and analytical reasoning.

Liberal Arts

A range of subjects including literature, philosophy, mathematics, and social and physical sciences, aimed at imparting general knowledge and critical thinking skills.

Thoughtful Problem Solving

An approach to solving problems that involves careful consideration, planning, and decision making.

Power Differential Heuristic

A cognitive short-cut used to quickly assess and respond to situations based on perceived imbalances in power or authority.