Since Most Banks Have Positive Gaps and Negative Duration Gaps,an

question 14

Multiple Choice

Since most banks have positive gaps and negative duration gaps,an increase in market interest rates will

• A) increase bank profits and increase bank capital.
• B) increase bank profits and decrease bank capital.
• C) decrease bank profits and increase bank capital.
• D) decrease bank profits and decrease bank capital.

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Definitions:

Noise

Any unwanted or disruptive sound that can interfere with communication, concentration, or the work environment.

Communication Model

A theoretical framework that describes how messages are transmitted and received between senders and receivers, including elements like encoding, medium, and feedback.

Distorts

Altering the perception, form, or nature of something in a way that misrepresents reality.

Channels

Means or mediums through which information, messages, or products are delivered or distributed between entities or within systems.