If Bank A has a negative gap and Bank B has a positive gap. Which of the following is true?
A) Bank A is more favorably affected by rising interest rates.
B) Bank B is more favorably affected by falling interest rates.
C) Bank A is adversely affected by falling interest rates.
D) none of the above
Correct Answer:
Verified
Q2: Which of the following is not a
Q13: Floating-rate loans cannot completely eliminate interest rate
Q18: Which of the following financial institutions would
Q33: A bank has a return on assets
Q34: If a bank sells interest rate futures,
Q36: Banks tend to focus their loans in
Q37: Which of the following is a measure
Q41: If a bank has assets and liabilities
Q42: International diversification of loans can best reduce
Q43: The performance of a bank that continually
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents