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All Else the Same,if a Bank's Liabilities Are More Sensitive

question 60

Multiple Choice

All else the same,if a bank's liabilities are more sensitive to interest rate fluctuations than are its assets,then ________ in interest rates will ________ bank profits.


Definitions:

Current Consumption

The amount of goods and services consumed by individuals or households in the present period.

Marginal Utility

Additional contentment or usefulness achieved through the use of one more unit of a good or service.

Utility

In the field of economics, the complete pleasure derived from the consumption of a product or service.

Budget

A projection of revenues and expenses for a specified timeframe.

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