Which of the Following Are Rate-Sensitive Assets

question 15

Multiple Choice

Which of the following are rate-sensitive assets?

• A) Short-term consumer loans, cheque accounts and three-month Treasury notes.
• B) Ten-year fixed rate mortgages, short-term consumer loans and long-term consumer loans.
• C) Short-term consumer loans, ten-year fixed rate mortgages and one-year term deposits.
• D) Short-term consumer loans, six-month Treasury notes and three-year

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Definitions:

Normal Profits

The level of profit needed for a company to remain competitive in the market, covering its opportunity costs.

Long Run

The time period in which all factors of production can be varied, but technology remains constant.

Product Differentiation

A marketing strategy that businesses use to distinguish their product from similar offerings in the market, through variations in quality, features, style, or branding.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for product differentiation and some price control.