A Bank Has a Negative Duration Gap

question 13

Multiple Choice

A bank has a negative duration gap. Interest rates decline. Which one of the following best describes the effects of the interest rate change?

• A) The bank's market value of equity is unchanged since the market value of its assets and liabilities move in the same direction.
• B) The bank's market value of equity goes up because the market value of its assets goes up by more than the market value of its liabilities goes down.
• C) The bank's market value of equity goes down because the market value of its assets goes up by more than the market value of its liabilities goes down.
• D) The bank's market value of equity goes down because the market value of its assets goes down by more than the market value of its liabilities goes down.
• E) The bank's market value of equity goes down because the market value of its liabilities increases by more than the market value of its assets increases.

Recognize the significance of legislation on health care practices, including privacy, fraud prevention, and administrative cost reduction.

Outline the education pathway and requirements for physicians and other healthcare professionals.

Identify the founders and key figures in medicine and their contributions.

Understand alternative medicine practices and their cultural backgrounds.

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Definitions:

Suspicious

The inclination to believe that something may be wrong or that someone may be harmful without certain evidence.

Therapeutic Communication

A technique used by healthcare providers to support, inform, and empathize with patients, aiming to improve their health and well-being through verbal and nonverbal interaction.

Sullivan's Theory

A psychological theory developed by Harry Stack Sullivan that emphasizes the role of interpersonal relationships and social experiences in shaping personality.

Activities of Daily Living

Routine tasks that individuals do every day without needing assistance, such as eating, bathing, dressing, and mobility.