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

question 52

Multiple Choice

If a bank has more rate-sensitive liabilities than rate-sensitive assets,then a(n) ________ in interest rates will ________ bank profits.

• A) increase; increase
• B) increase; reduce
• C) decline; reduce
• D) decline; not affect

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Definitions:

Corporate Customers

Businesses or organizations that purchase a company's products or services, often in bulk or on a contractual basis.

Luxury Food

High-quality, often expensive food items that are considered rare or indulgent, typically consumed as a sign of wealth or for special occasions.

Net 30

A payment term indicating that the full payment is due 30 days from the invoice date or delivery of service/product.

Invoice

A document issued by a seller to a buyer that lists the products or services provided and the amount due for payment.