If a Rise in Interest Rates Causes the Market Value

question 62

Multiple Choice

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

• A) negative duration gap
• B) positive duration gap
• C) negative gap
• D) positive gap

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Definitions:

Productive

Pertaining to the ability or capacity to produce goods, services, or results, especially in a way that contributes to economic output or personal success.

Sociological Representation

The concept that elected representatives should reflect the demographic and social characteristics of the people they represent.

Agency Representation

A concept in political science where elected officials serve as representatives of their constituents, acting on their behalf in legislative or policy decision-making.

Oversight Powers

The authority given to legislative bodies to review, monitor, and supervise federal agencies, programs, and policy implementations to ensure transparency and accountability.