Given That Most Banks Have Positive Gap and Negative Durations,banks

question 97

Multiple Choice

Given that most banks have positive gap and negative durations,banks prefer

• A) lower market interest rates.
• B) higher market interest rates.
• C) higher market fixed rates but lower market floating rates.
• D) either higher or lower market interest rates since interest rates have little effect on bank profits.

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Definitions:

Organisational Behaviour

A field of study that investigates how individuals, groups, and structure affect and are affected by behavior within organizations, aiming to apply such knowledge toward improving an organization's effectiveness.

Individuals and Groups

Refers to the study and understanding of how people behave and interact within a group setting in organizational contexts.

Maslow's Theory

A psychological framework proposing a hierarchy of human needs, from basic (physiological) needs to higher-level needs like self-actualization, influencing motivation.

Worker Performance

The effectiveness and efficiency with which an employee carries out their assigned duties and responsibilities.