If a bank has short-term deposits and provides long-term fixed-rate loans, and interest rates decline over time, its net interest margin should be
A)declining over time.
B)rising over time.
C)constant over time.
D)consistently negative.

Name: If a bank has short-term deposits and provides long-term fixed-rate loans, and interest rates decline over time, its net interest margin should be A)declining over time. B)rising over time. C)constant over time. D)consistently negative.
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Question

Quizplus · Accepted Answer

The Answer is B

If a Bank Has Short-Term Deposits and Provides Long-Term Fixed-Rate