Bank capital will decline following an increase in interest rates if the value of its
A) fixed-rate assets is greater than the value of its fixed-rate liabilities.
B) fixed-rate assets is less than the value of its fixed-rate liabilities.
C) fixed-rate assets is greater than the value of its variable-rate assets.
D) fixed-rate liabilities is greater than the value of its variable-rate liabilities.
A
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Suppose that a local government decides to provide more funds to the local police department in order for the department to hire additional police officers. Is there an opportunity cost of this action? If so, how would you measure it?
What will be an ideal response?
The difference between the value of the goods a country exports and the value of the goods a country imports is the country's
A) balance of trade. B) capital account balance. C) current account balance. D) financial account balance.
During recessions natural real GDP
A) falls. B) increases. C) remains constant. D) A, B, or C do occur during any given recession.
In which market type does the firm face the most inelastic demand curve?
A) perfect competition B) monopolistic competition C) monopoly D) oligopoly