A(n) ____ in interest rates could reduce a commercial bank's expected cash flows because the interest paid on deposits may ____ than the interest earned on loans and investments.
A) increase; increase to a greater degree
B) increase; increase to a lesser degree
C) decrease; increase to a greater degree
D) decrease; increase to a lesser degree
Correct Answer:
Verified
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A) market
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Q2: Gross interest income is affected by
A)market interest
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Q9: A bank's net interest margin represents the
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