Which One of the Following Statements About Interest Rate Movements

Multiple Choice

Which one of the following statements about interest rate movements is true?

A) An upward parallel shift of interest rates will cause a loss of income if the rate-sensitivity of a bank's liabilities is higher than the rate-sensitivity of its assets.
B) A bank will lose income if it has more rate-sensitive liabilities than rate-sensitive assets.
C) Falling interest rates will always result in mark-to-market profits on short positions in fixed rate securities.
D) Rising interest rates can result in mark-to-market losses on fixed-rate assets.