Which of the Following Statements Is True

question 7

Multiple Choice

Which of the following statements is true?

• A)An FI with a positive repricing gap expects interest rates to remain stable.
• B)An FI with a positive repricing gap expects interest rates to rise.
• C)An FI with a positive repricing gap expects interest rates to remain fall.
• D)An FI with a positive repricing gap has not particular expectations regarding interest rate movements.

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Definitions:

Marginal Utility

The incremental pleasure or value received from consuming one more unit of a good or service.

Marginal Utility Schedules

Tables or graphs that show the relationship between the quantity of a good consumed and the utility (satisfaction) that is gained from each additional unit.

Total Utility

The complete satisfaction or advantage gained from consuming a specified overall amount of a product or service.

Utility-Maximizing

A principle of economics that assumes consumers aim to achieve the highest level of satisfaction possible from their available resources.