If a Bank Has a Positive GAP, an Increase in Interest

question 28

Multiple Choice

If a bank has a positive GAP, an increase in interest rates will cause interest income to __________, interest expense to__________, and net interest income to __________.

• A) increase, increase, increase
• B) increase, decrease, increase
• C) increase, increase, decrease
• D) decrease, decrease, decrease
• E) decrease, increase, increase

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Definitions:

Indirect Approach

A communication strategy where the main point or message is not immediately presented, used often to soften the delivery of sensitive information.

Negative Messages

Communications that convey refusals, rejections, or other unfavorable information in a careful and considerate manner.

Positive Statement

An affirmation or declaration that is optimistic, constructive, and supportive in tone or content.

Negative Message

Communication that relays unfavorable information, rejections, or feedback to the recipient.