Durango Bank has $2 million in rate-sensitive liabilities and $3 million in rate-sensitive assets. Durango's gap is ____, and Durango is probably more concerned about a(n) ____ in interest rates.
A) -$1 million; increase
B) -$1 million; decrease
C) $1 million; increase
D) $1 million; decrease
E) none of the above

Question

Quizplus · Accepted Answer

The Answer of Durango Bank has $2 million in rate-sensitive liabilities and $3 million in rate-sensitive assets. Durango's gap is ____, and Durango is probably more concerned about a(n) ____ in interest rates.
A) -$1 million; increase
B) -$1 million; decrease
C) $1 million; increase
D) $1 million; decrease
E) none of the above

Durango Bank Has $2 Million in Rate-Sensitive Liabilities and $3