If a bank has more rate-sensitive liabilities than rate-sensitive assets,then a(n)________ in interest rates will ________ bank profits.

Name: If a bank has more rate-sensitive liabilities than rate-sensitive assets,then a(n)________ in interest rates will ________ bank profits.
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Question

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When a bank has more rate-sensitive liabilities than rate-sensitive assets, an increase in interest rates will increase the cost of those liabilities more than it increases the returns on assets, thereby reducing bank profits.

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