If an organisation has more interest-sensitive assets than liabilities,a _______ in interest rates will _______ the organisation's profits.
A) rise; increase
B) rise; decrease
C) fall; increase
D) fall; not affect

Question

Quizplus · Accepted Answer

When an organization has more interest-sensitive assets than liabilities, an increase in interest rates will lead to higher income from those assets relative to the cost of liabilities, thus increasing the organization's profits.

If an Organisation Has More Interest-Sensitive Assets Than Liabilities,a _______