Which of the Following Statements Is True

question 55

Multiple Choice

Which of the following statements is true?

• A)A negative gap indicates that a rise in interest rates would lower the bank's net interest income.
• B)A positive gap indicates that a rise in interest rates would lower the bank's net interest income.
• C)A negative gap indicates that a rise in interest rates would increase the bank's net interest income.
• D)None of the listed options are correct.

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Definitions:

Russia

The largest country in the world by land area, spanning Eastern Europe and northern Asia, known for its rich history, cultural heritage, and political influence.

United States

A federal republic in North America composed of 50 states, a federal district, five major self-governing territories, and various possessions.

Economic Sanctions

Financial and trade penalties applied by one or more countries against a targeted country, group, or individual to influence behavior or politics.

Nuclear Weapons

Explosive devices that derive their destructive power from nuclear reactions, either fission or a combination of fission and fusion.