If a Bank Increases Interest Rates on Its Loans for Its

question 88

Multiple Choice

If a bank increases interest rates on its loans for its customers and then they seek new loans from other banks this interest rate exposure is called _____ interest rate risk.

• A) direct
• B) indirect
• C) basis
• D) reinvestment

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Definitions:

Gradual Emancipation

The process of ending slavery incrementally over time, often involving laws that free certain groups of slaves or future generations rather than immediate abolition.

U.S. Army

The United States Armed Forces division tasked with overseeing military activities on terrestrial terrain.

Natural Increase

The growth in a population resulting from the excess of births over deaths, excluding migration.

Old South

The term refers to the socio-economic and cultural landscape of the southern United States before the Civil War, characterized by plantation economies.