A Gap Ratio of Less Than One Suggests That

question 18

Multiple Choice

A gap ratio of less than one suggests that

• A) rate-sensitive assets exceed rate-sensitive liabilities.
• B) an increase in interest rates would increase the bank's net interest margin.
• C) rate-sensitive liabilities exceed rate-sensitive assets.
• D) a decrease in interest rates would decrease the bank's net interest margin.
• E) B and D

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Definitions:

Stool Softener

A medication or supplement taken to ease the passage of stool and prevent constipation.

Ineffective Airway Clearance

A state where an individual has difficulty removing respiratory secretions or obstructions from the airway to maintain airway patency.

Narrowed Airways

A condition where the passages that convey air into and out of the lungs are restricted, leading to difficulties in breathing, often associated with asthma or other respiratory conditions.

Thick Sputum

A thick, sometimes sticky substance secreted by the mucous membranes of the respiratory tract, indicative of various conditions or infections.