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(3) An inverted yield curve, in which long-term interest rates are lower than short-term interest rates is a good situation for commercial banks because their
(3) An inverted yield curve, in which long-term interest rates are lower than short-term interest rates is a good situation for commercial banks because their cost of funds is based on short-term rates while the interest they charge on loans is based on long-term interest rates. (4) The Bas due to unexpected changes in the difference between long-t statement true or false? el Committee on Bank Supervision defines an operational loss as the loss in market value erm and short-term interest rates. Is that (5) Net interest margin is defined as interest income minus the cost of funding
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