A bank has rate sensitive assets of $100 and rate sensitive liabilities of $200, which of the following answers is correct for the bank?
A) It has a negative funding gap and will have a lower NIM if rates fall.
B) It has a positive funding gap and will have a lower NIM if rates rise.
C) It has a positive funding gap and will have a lower NIM if rates fall.
D) It has a negative funding gap and will have a lower NIM if rates rise.
Correct Answer:
Verified
Q18: If a customer comes to the bank
Q19: A depository institution differs from a non-financial
Q20: A bank has total assets of $100
Q21: A savings and loan has a return
Q22: A credit union has a net interest
Q24: Depository institutions have the lowest interest-rate risk
Q25: If two banks A and B have
Q26: To measure credit risk, which of the
Q27: Which of the following are indicators of
Q28: Financial institution managers should act in their
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents