During a Period of ____ Interest Rates, a Bank's Net

question 44

Multiple Choice

During a period of ____ interest rates, a bank's net interest margin will likely ____ if its liabilities are more rate sensitive than its assets

• A) decreasing; decrease
• B) increasing; increase
• C) decreasing; increase
• D) increasing; decrease
• E) answers C and D are correct

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Definitions:

Intangibility

A characteristic of services that means they cannot be seen, touched, tasted, or easily quantified before they are purchased.

Perishable Nature

A characteristic of goods that have a limited lifespan and deteriorate or lose value over time, such as food products or live plants.

Inventory

The total amount of goods or materials held in stock by a business, including raw materials, work-in-progress, and finished goods.

Inconsistency

The quality of being irregular, erratic, or not consistent in principles, actions, or outcomes, often leading to unpredictability or conflict.