Which of the Following Would Be an Example of Interest

Multiple Choice

Which of the following would be an example of interest rate risk?

A) An increase in interest rates such that the return on an FI's assets increases relative to the costs of its liabilities.
B) An increase in interest rates so that the costs of an FI's liabilities increase relative to the return on its assets.
C) A decrease in interest rates such that the return on an FI's assets increases relative to the costs of its liabilities.
D) A change in interest rates such that the return on an FI's assets exceeds the costs of its liabilities.