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

question 15

Multiple Choice

If a bank has a negative 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:

Writ of Certiorari

A court order that directs a lower court to deliver its record in a case so that the higher court may review it.

En Banc Appeal

A type of appeal in which the case is heard before all judges of an appellate court rather than by a panel of judges selected from them, typically reserved for cases of exceptional importance.

Forum Non Conveniens

A legal doctrine allowing a court with jurisdiction to dismiss a case if another more appropriate forum exists that would better serve the convenience of the parties and the ends of justice.

Alternative Dispute Resolution

A range of processes used to resolve conflicts or disputes without resorting to traditional court litigation, examples include mediation and arbitration.