Floating-Rate Loans Cannot Completely Eliminate Interest Rate Risk; If the Cost

question 42

True/False

Floating-rate loans cannot completely eliminate interest rate risk; if the cost of funds is changing more frequently than the rate on assets, the bank's net interest margin is still affected by interest rate fluctuations.

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Definitions:

Stereotype Threat

A self-confirming concern that one will be evaluated based on a negative stereotype.

Extrinsic Motivation

Motivation that is driven by external rewards such as money, fame, grades, or praise.

Athletic Performance

The level of achievement or competence displayed by an athlete or sports player in competitive settings.

Head Start Programs

Early childhood education programs funded by the federal government designed to promote school readiness in low-income children.