1. For a banking firm whose interest sensitive assets are less than its interest sensitive liabilities, losses will incur if interest rates fall because the net interest margin will be diminished and the banks management could reduce the risk of losses by decreasing interest sensitive assets or increase interest sensitive liabilities. - State whether this statement is True or False. If False, write the correct answer.

2. As the Twenty First Century opened and market interest rates plummeted to record lows, interest rate risk threatened to sternly impact the net asset values of money market accounts. - State whether this statement is True or False. If False, write the correct answer.

3. Few financial managers need to be price takers, not price makers, and accept interest rates as a given and project accordingly. - State whether this statement is True or False. If False, write the correct answer.