If the First National Bank has a gap equal to a negative $30 million, then a 5 percentage point increase in interest rates will cause profits to
A) increase by $15 million.
B) increase by $1.5 million.
C) decline by $15 million.
D) decline by $1.5 million.
D
Economics
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No particular stock is a better buy than any other stock if
a. stock prices are driven by investors' "animal spirits.". b. the random-walk theory of stock prices is incorrect. c. the efficient markets hypothesis is correct. d. actively managed mutual funds always outperform index funds.
Economics
When we compare PAE and actual output (Y) if PAE is greater than Y we expect that:
A. eventually production will decrease. B. eventually production will increase. C. there will be no change in aggregate production. D. the government will intervene by cutting down on taxes.
Economics