A bank's assets tend to be long-term while its liabilities are short-term. Therefore, when interest rates rise, the value of the bank's assets:
A. will decrease by more than the value of its liabilities.
B. increases and the value of its liabilities decreases.
C. decreases and the value of its liabilities increases.
D. increases by more than the value of its liabilities.
Answer: A
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In 2008, the current account balance was -706 billion and the capital and financial account balance was +711 billion. Therefore, the official settlements account balance was ________ and the balance of all payments accounts was ________
A) negative; negative B) positive; positive C) not enough information to determine; most likely negative D) -5; zero E) +5; zero
If the price level rises by 3 percent and workers' money wage rate increase by 1 percent, then the
A) quantity of labor supplied decreases. B) quantity of labor supplied increases. C) quantity of labor supplied does not change because there is no change in the real wage rate. D) real wage rate increases.
Which of the following is an example of a bank's assets?
A) reserves borrowed from the Fed B) checkable deposit C) vault cash D) savings deposits
A shortage of product means a(n):
A. excess supply of the product. B. excess demand of the product. C. situation where the quantity demanded is less than the quantity supplied. D. situation where the current market price is too high.