If First National Bank Has a Gap Equal to a Negative

question 56

Multiple Choice

If First National Bank has a gap equal to a negative $30 million,then a 5 percentage point increase in interest rates will cause profits to

• A) increase by $15 million.
• B) increase by $1.5 million.
• C) decline by $15 million.
• D) decline by $1.5 million.

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Definitions:

Salivary Gland

An exocrine gland in the mouth that produces saliva, which aids in digestion and helps maintain oral health.

Hair Cells

Specialized cells located in the inner ear that convert sound waves into electrical signals which can be interpreted by the brain.

Basilar Cells

Specialized cells found in the organ of Corti within the cochlea of the inner ear, which play a role in the hearing process by supporting the hair cells responsible for converting sound vibrations into electrical signals.

Ossicles

Three small bones located in the middle ear known as the malleus, incus, and stapes, which transmit sound vibrations from the eardrum to the inner ear.