8-92 Which of the Following Statements Is True

question 61

Multiple Choice

8-92 Which of the following statements is true?

• A)An increase in interest rates will benefit the FI since the increase in the market value of assets will be greater than the increase in the market value of liabilities.
• B)An increase in interest rates will harm the FI since the increase in the market value of assets will be greater than the increase in the market value of liabilities.
• C)An increase in interest rates will harm the FI since the decrease in the market value of assets will be greater than the decrease in the market value of liabilities.
• D)A decrease in interest rates will harm the FI since the increase in the market value of assets will be greater than the increase in the market value of liabilities.
• E)A decrease in interest rates will benefit the FI since the increase in the market value of assets will be smaller than the increase in the market value of liabilities.

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Definitions:

Heredity

The passing on of physical or mental characteristics genetically from one generation to another.

Instinct Approaches

Theoretical perspectives in psychology that suggest some human behaviors are innate and due to evolutionary programming.

Explanation

The process of making something clear or understandable by describing the relevant facts or ideas.

Motivation

The process by which activities are started, directed, and continued so that physical or psychological needs or wants are met.