Multiple Choice
If a bank has $50 million in rate-sensitive assets and $20 million in rate-sensitive liabilities then
A) an increase in interest rates will reduce bank profits.
B) a decrease in interest rates will reduce bank profits.
C) interest rate changes will not impact bank profits.
D) a decrease in interest rates will increase bank profits.
Correct Answer:

Verified
Correct Answer:
Verified
Q100: When banks calculate the losses the institution
Q101: All of the following are examples of
Q102: In one sense _ appears surprising since
Q103: Collateral requirements lessen the consequences of _
Q104: Which of the following are NOT reported
Q106: Bank reserves include<br>A)deposits at the Fed and
Q107: When $1 million is deposited at a
Q108: To reduce moral hazard problems,banks include restrictive
Q109: All of the following are nontransaction deposits
Q110: All of the following are operating expenses