For a Bank That Has a Positive Duration Gap, an Increase

Multiple Choice

For a bank that has a positive duration gap, an increase in interest rates will cause a(n) _______ in the economic value of assets, a(n) _______ in the economic value of liabilities, and a(n) _______ in the economic value of equity.

A) increase, decrease, increase
B) increase, increase, decrease
C) increase, increase, increase
D) decrease, decrease, increase
E) decrease, decrease, decrease