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Which of the Following Statements Is True

Question 55

Multiple Choice

Which of the following statements is true?


A) A negative gap indicates that a rise in interest rates would lower the bank's net interest income.
B) A positive gap indicates that a rise in interest rates would lower the bank's net interest income.
C) A negative gap indicates that a rise in interest rates would increase the bank's net interest income.
D) None of the listed options are correct.

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