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

Question

Quizplus · Accepted Answer

If a bank has more rate-sensitive assets than rate-sensitive liabilities, then an increase in interest rates will lead to an increase in the bank's profits. This is because the bank's assets will generate more income while the cost of its liabilities remains the same, leading to a wider net interest margin and higher profits.

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