Is the Bank Exposed to Interest Rate Increases or Decreases

question 15

Multiple Choice

Is the bank exposed to interest rate increases or decreases and why?

• A)Interest rate increases because the value of its assets will rise more than its liabilities.
• B)Interest rate increases because the value of its assets will fall more than its liabilities.
• C)Interest rate decreases because the value of its assets will rise less than its liabilities.
• D)Interest rate decreases because the value of its assets will fall more than its liabilities.
• E)Interest rate increases because the value of its assets will fall less than its liabilities.

---

Definitions:

Lego

A brand of plastic construction toys that are interlocking, allowing for the building of various objects and structures.

Skipping

Skipping can refer either to a physical jumping movement often seen in children's play or to omitting or bypassing something in a sequence.

Jumping

A physical action involving propelling oneself off the ground using one's legs, which is a fundamental motor skill developing in early childhood.

Psychological Closeness

The feeling of being emotionally connected or intimate with another individual or group.