If a bank has ________ rate-sensitive assets than liabilities,a ________ in interest rates will reduce bank profits,while a ________ in interest rates will raise bank profits.
A)more;rise;decline
B)more;decline;rise
C)fewer;decline;decline
D)fewer;rise;rise

Question

Quizplus · Accepted Answer

If a bank has more rate-sensitive assets than liabilities, a decline in interest rates will reduce bank profits because the income from their assets will decrease more than the interest expense on their liabilities. On the other hand, a rise in interest rates will increase bank profits because the income from their assets will increase more than the interest expense on their liabilities.

If a Bank Has ________ Rate-Sensitive Assets Than Liabilities,a ________

If a Bank Has Rate-Sensitive Assets Than Liabilities,a