Suppose a bank's assets have an average duration of 3 years, and its liabilities have an average duration of 5 years. Since this bank has a ________ duration gap, a fall in market interest rates will _______ bank capital. Select one: A. positive; increase B. negative; decrease C. negative; increase D. positive; decrease

Suppose a bank's assets have an average duration of 3 years, and its liabilities have an average duration of 5 years. Since this bank has a __ duration gap, a fall in market interest rates will _ bank capital. Select one: A. positive; increase B. negative; decrease C. negative; increase D. positive; decrease

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Money, Banking And The Financial System

Section: Chapter Questions

Problem 3WNG

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