If a bank has more interest-rate sensitive liabilities than interest-rate sensitive assets, an increase in the interest rate will cause profits to:

A. increase.
B. remain constant.
C. decrease.
D. be negative, meaning there will not be profits, only losses.

Answer: C

Economics

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In an oligopoly

A) there are only a few firms. B) there is no product differentiation. C) there is free entry and exit. D) firms' decisions are unrelated to each other.

Economics

The above figure shows the Lorenz curve for wealth for the nation of Rusha. If the government were to confiscate half of the wealth from the wealthiest twenty percent of the population and give it to the poorest twenty percent, then

A) wealth distribution would be more equal. B) wealth distribution would be unchanged. C) wealth distribution would be more unequal. D) the Lorenz curve would shift rightward.

Economics