Question: All things held equal, if a bank's liabilities are more rate sensitive than its assets, aan _________ in interest rates will ________ bank profits. decrease;

All things held equal, if a bank's liabilities are more rate sensitive than its assets, aan _________ in interest rates will ________ bank profits.

decrease; increase

increase; reduce

decrease; reduce

increase; increase

If risky borrowers are the ones who most actively seek loans then financial intermediaries will face a problem with

free-riding

moral hazard

liquidity

adverse selection


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