Question: If a bank has a positive dollar gap (interest-sensitive gap where rate sensitive assets is greater than rate sensitive liabilities) then net interest income will

If a bank has a positive dollar gap (interest-sensitive gap where rate sensitive assets is greater than rate sensitive liabilities) then net interest income will decrease with which following change in interest rates?

A.

Stay the same
B.

Fall
C.

Rise
D.

A bank with a positive interest-sensitive gap will never have a decrease in net interest income
E.

None of the other responses are correct

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