For Every $100 in Assets, a Bank Has $40 in Interest-Rate

question 95

Multiple Choice

For every $100 in assets, a bank has $40 in interest-rate sensitive assets, and the other $60 in non-interest-rate sensitive assets.The same bank has $50 for every $100 in liabilities in interest-rate sensitive liabilities, the other $50 are in liabilities that are not interest-rate sensitive.If the interest rate on assets increases from 5 to 6 percent, and the interest rate on liabilities increases from 3 to 4, percent the impact on the bank's profits per $100 of assets will be:

• A)An increase of $0.10
• B)A decrease of $0.10
• C)A reduction of $1.00
• D)Zero since the interest rates on assets and liabilities increased by the same amount

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Definitions:

Team Conditions

Team Conditions are the set of circumstances, resources, and environments that influence how a team operates and its potential for success.

Flow State

A mental state in which a person performing an activity is fully immersed in a feeling of energized focus, full involvement, and enjoyment in the process.

Team Performance

The extent to which a team effectively achieves its goals and objectives, often determined by various factors including communication, coordination, and member skills.

Team Cohesion

The degree to which team members are attracted to each other and motivated to stay in the team, impacting overall performance.