A Bank with a Negative Interest-Sensitive GAP

Multiple Choice

A bank with a negative interest-sensitive GAP:

A) has a greater dollar volume of interest-sensitive liabilities than interest-sensitive assets.
B) will generate a higher interest margin if interest rates rise.
C) will generate a lower interest margin if interest rates fall.
D) has assets and liabilities with the same duration.
E) has liabilities with a greater duration than its assets.