12. A gap ratio of less than one suggests that: b. an increase in interest rates would increase the bank's net interest margin, c. rate-sensitive liabilities exceed rate-sensitive assets; d. an increase in interest rates would increase the bunk's net profitability. 13. Banks could decrease their liquid position by retructuring their asset portfolio to cootain fewer and more a. treasury securities; excess reserves b. loans, treasury securtics c. corporate bonds, treasury securities d. treacury securities, loans. 14. Insufficient capital to offiset sudden decline in the valie of assets versus liabilities is referred to x risk a. sovereign b. liquidity C. insolvency d. credit 15. Insufficient cash, ether primary or secondary, to of et sudden umanticipated demand for funds/withdrawals is refered to as ritk a. sovereign b. hiquidity c. insolvency d. credit 16. The 1999 Finan cial Services Moderniration Act a. temoved all geographic restrictions to bark operatioes and branching: b. enabled banks and others to increase the consolidation of financial servicer; c. forced all financial institutions to improve their techoological capabilities, d. allowed banks to ignore all usury laws within the states in which they operated 17. Management of Interest Rate Rikk is aided through each of the following except: I 2. pap analyris b. diversification C. duration analyeis d repression analysis 18. Managensent of Liquidiry is aided thr ough each of the following exicept a dirition b. securitiritation criactice. d. a treaury portifolio 19. As the dollar amount relaied to faling banls and thrifs in the 1980 s moanted, which of the following was organized to landle and close those failing institutions a. FDIC b. FOMC c. RTC d. TBIF ansets and rate-sensitive labilities is called. 2. gap management b. duratica measurencat c. maturity match d. tegrestion analysis a the buk is moce fivorably affected by naing interest nitex. b. the bank is more favotably affected by filling interest rates, c. the bank is not more favorably affected by either a) er b.) abose: 22 Without any changes in the flow of finds or the level of finds at the buaks, a decrease in the tesenve requirenetit will: 2. increase reyuired resenves bi decteise enceuresties Eincreate excerreterver d decrevie total tescrves. about doubling," then this would be in coutnat to the FaD' i inithat action to the 2007 crisis when we spw a different change on the FED's balimoe sheet. Which of the feilowing reflects theie contrating actioos best. In ractict to the 2007-2008 crisis