If a Decline in Interest Rates Causes the Market Value

question 12

Multiple Choice

If a decline 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:

Significant

Important or of consequence, often used to describe the extent to which something matters or impacts a given context.

Acquired Comparative Advantage

An economic concept where a country becomes more efficient at producing certain goods or services due to factors other than its natural endowments, such as technology or quality of education.

Automobiles

Vehicles designed for transporting passengers on roads.

Japanese Companies

Businesses or corporations based in Japan, often known for their management practices and technological advancements.