If a Bank Has More Rate-Sensitive Liabilities Than Assets,then an Increase

question 13

True/False

If a bank has more rate-sensitive liabilities than assets,then an increase in interest rates will reduce bank profits.

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Definitions:

Sales Discount

A reduction in the price of goods or services offered to customers, usually to prompt early payment or bulk purchases.

FOB Shipping Point

A shipping term indicating that the buyer takes responsibility for loss or damage once the goods are shipped, and pays the shipping cost.

Terms

Conditions that are agreed upon in a financial or business arrangement.

Merchandise Inventory

The total value of a company's goods that are available for sale at the end of an accounting period.