A Bank's Net Interest Margin Will Likely Decline If It

question 3

Multiple Choice

A bank's net interest margin will likely decline if it has a large amount of

• A)rate-sensitive assets and no rate-sensitive liabilities.
• B)rate-sensitive liabilities and no rate-sensitive assets.
• C)loans to technology firms.
• D)real estate loans.

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Definitions:

American Newborn

An infant who has recently been born in the United States.

Presbycusis

Age-related hearing loss that gradually occurs as one gets older, affecting the ability to hear higher frequencies.

Glaucoma

A group of eye conditions that damage the optic nerve, essential for vision, often resulting in vision loss and blindness.

Curvature

the degree of curvature or bending in a line or surface, often used in mathematics and physics.