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

Name: If a bank has more rate-sensitive assets than rate-sensitive liabilities,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 assets than liabilities, an increase in interest rates will increase the income from these assets more than the cost of liabilities, thus increasing bank profits.

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