All things held equal, if a bank's liabilities are more rate sensitive than its assets, aan _________

Fantastic news! We've Found the answer you've been seeking!

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; 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

Posted Date: Oct 21, 2021 05:55 PM

See More Questions

An increase in interest rates will cause the current resale value of a long term bond to increase more than that of a short term bond.
An increase in interest rates will generally lower the Price of assets to see this calculate the percent value of the following two assets at interest rates of 5 percent, 10 percent, and 20 percent...
Moral Hazard versus Adverse Selection in Health Care Reform: We mentioned moral hazard only brieflyand primarily in the context of how this might aggravate the adverse selection problem. In this...
The inequality describes the range of monthly average temperatures T in degrees Fahrenheit at a certain location. (a) Solve the inequality. (b) If the high and low monthly average temperatures...
The article Organ Transplant Demand Rises Five Times as Fast as Existing Supply (San Luis Obispo Tribune, February 23, 2001) included a graph that showed the number of people waiting for organ...
Why is depreciation of plant and equipment an expense in the income statement?
Critics of the new hybrid benefit corporation have suggested that benefit corporation laws are unnecessary because corporations are already permitted to operate with a corporate social responsibility...
Compare and contrast the following techniques based on costs and benefits: Test data method Base case system evaluation Tracing Integrated test facility Parallel simulation
Which Python data structure is constructed using the code below? a = {"a": 1, "b": 2, "c": 3}
A certain newspaper provides the net asset value, the year-to-date percent return, and the three-year percent return for 882 mutual funds at the end of 2017. Assume that a simple random sample of 12...
Solve the following problems about x = Ax, = [_-15 -8]. A = (1) Find the eigenvalues of A. (2) Choose a transformation matrix T to transform A to a diagonal matrix. (3) For the transformed state x =...
Adano Restaurant Supply, which sells only to commercial customers, sold 200 plastic dishes to Airport Diner. When the owner of the diner attempted to wash the dishes in the dishwasher, they were...
After Balkus died intestate, included among Balkuss possessions were bank deposit slips for a savings account owned by him. On each deposit slip was a handwritten notation, Payable to Ann Balkus...
Jasons decided to declare bankruptcy because his fi nancial situation was desperate and his only property was a nearly new car worth about $14,000. In an attempt to conceal the value of his property,...
Anderson was seriously injured in a traffi c accident. Andersons daughter called a doctor, Lawrence, and told him to give my father the best care you can give him, and Ill pay whatever you charge....
Wang orally agreed to sell a thoroughbred horse to Presti for $60,000. When Presti sent a check in payment, Wang told him that he intended to hold the check for a month for tax purposes. Wang...
Accounting is more than simply calculating the net profit or loss from business operations. Accounting is actually a process that involves: options: assigning responsibility for collecting financial...
Which of the following is FALSE regarding the purchasing power parity (PPP). a. The PPP is a manifestation of the law of one price b. The PPP says that a country with a higher expected inflation can...
Travis Mordica asks, Since share dividends dont change anything, why declare them? What is your answer to Travis?
The following equity accounts are in the ledger of Eudaley Group at December 31, 2025. Instructions Prepare the equity section of the statement of financial position at December 31, 2025. Share...
The equity section of Atrio Ltd. showed the following: share premium 6,101, share capitalordinary 925, share capitalpreference 58, retained earnings 7,420, and treasury shares 2,828. (All amounts are...

All things held equal, if a bank's liabilities are more rate sensitive than its assets, aan _________

Question:

Expert Answer:

Answer 1 increase reduce When a bank has a negative gap it is said to be liability sensitive and a d... View the full answer

Students also viewed these general management questions