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, that is _______ than the _________ in the economic value of liabilities, and a(n) _______ in the economic value of equity.

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