If a Rise in Interest Rates Causes a Bank's Market

question 21

Multiple Choice

If a rise in interest rates causes a bank's market value of net worth to rise,the bank must have a:

• A) positive duration gap for its portfolio of assets and liabilities.
• B) negative duration gap for its portfolio of assets and liabilities.
• C) negative gap.
• D) positive gap.

---

Definitions:

Child Molesters

Refers to individuals who sexually abuse children under the age of consent.

Sexual Thoughts

Cognitive processes or mental reflections focused on sexual desire, activity, or attraction.

Lie Detector

A machine or procedure that attempts to determine whether a person is telling the truth by measuring physiological responses, such as blood pressure, pulse, and respiration.

Planned Behavior

A theory that predicts an individual's intention to engage in a behavior at a specific time and place.