If a Bank Expects Interest Rates to Increase in the Coming

question 10

Multiple Choice

If a bank expects interest rates to increase in the coming year, it should:

• A) increase its GAP.
• B) issue fewer variable rate loans.
• C) issue more 3-month CDs.
• D) issue more fixed rate loans.
• E) become more liability sensitive.

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Definitions:

Inclusive Method

A research or pedagogical approach that intentionally includes a diverse range of perspectives and experiences.

Whole-Language Approach

An educational method that stresses the importance of understanding words and phrases within their overall context for teaching reading and writing.

Trial-and-Error

A method of problem-solving that involves trying various methods to see what works, without initially knowing the correct solution.

Autism

A developmental disorder characterized by difficulties in social interaction, communication, and by restricted and repetitive behavior.