If Interest Rates Rise by 5 Percentage Points,then Bank Profits

question 10

True/False

If interest rates rise by 5 percentage points,then bank profits (measured using gap analysis)will increase regardless of the income gap.

---

Definitions:

Autonomic Nervous System

The part of the peripheral nervous system that controls the bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.

Physiological Experience

The physical responses and sensations experienced by the body, often as a reaction to external stimuli or internal cognitive processes.

Emotional Reaction

A complex psychological state that results from the interpretation of stimuli, involving physiological, behavioral, and cognitive responses.

James-Lange Theory

A theory of emotion suggesting that emotions occur as a result of physiological reactions to events.