When a Bank's Borrowing Rate Goes Up,which of the Following

question 13

Multiple Choice

When a bank's borrowing rate goes up,which of the following is true

• A) DVA increases so that the bank's profit goes down
• B) DVA increases so that the bank's profit goes up
• C) DVA declines so that the bank's profit goes down
• D) DVA declines so that the bank's profit goes up

---

Definitions:

Contractually Agreed-upon Fee

A fee that has been specifically negotiated and agreed upon within the terms of a contract.

Damages

A monetary compensation awarded to an individual for loss or injury as a result of the violation of legal rights.

Public Company Accounting Oversight Board

An organization established to oversee the audits of public companies in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.

Sanctions

Penalties or measures imposed by a government or organization to enforce obedience or deter unacceptable behavior.