12. A bank with a negative interest-sensitive GAP:

Has a greater dollar volume of interest-sensitive liabilities than interest-sensitive assets.

Will generate a higher interest margin if interest rates rise.

Will generate a higher interest margin if interest rates fall.

A and B.

A and C.

unanswered

13. The net interest margin of a bank is influenced by:

Changes in the level of interest rates.

Changes in the volume of interest-bearing assets and interest-bearing liabilities.

Changes in the mix of assets and liabilities in the bank's portfolio.

All of the above.

A and B only.

unanswered

14. Which of the following would be an example of a non-reprice-able asset?

Money the bank has borrowed from the money market

Cash in the vault

Demand deposits that do not pay an interest rate

Short term securities issued by the government about to mature owned by the bank

All of the above are examples of reprice-able assets