If a Rise in Interest Rates Causes the Market Value

question 62

Multiple Choice

If a rise 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

---

Definitions:

Infinitive Phrase

A grammatical term for the basic form of a verb plus any complements and modifiers, typically beginning with "to" (e.g., to eat, to run, to be seen).

Talking Headings

Headings or titles that are designed to be engaging or conversational, aiming to capture the reader's interest more effectively.

Summarize

To condense a larger piece of content into its main points or essence.

Descriptive Statistics

Statistical procedures used to summarize, organize, and simplify data, including measures such as mean, median, mode, and standard deviation.