36 . A bank with a positive interest - sensitive gap will have a decrease in net interest income when interest rates in the market A ) Rise B ) Stay constant ( ) Fall D ) A bank with a positive interest - sensitive gap will never have a decrease in net interes Income 37 . Bank A has a loan - to - deposit ratio of 75/ core deposits equal 62% of total assets and borrowed funds are 5% of assets . Bank B has a loan- to - deposit ratio of 120% . Core deposits are 55% of assets and borrowed funds are 20% of assets . Which bank has more liquidity risk ? Everything being equal , which bank will probably be more profitable when interest rates are low ? A ) Bank A ; Bank B B ) Bank A ; Bank B C ) Bank B ; Bank A D ) Bank B ; Bank B 38 . Which of the following results in a net liquidity drain A ) Demand deposits increase $120 Loans increase $80 B ) Demand deposits decrease $120 loan repayments are $250 ( ) Repurchase agreements increase $100 demand deposits decrease $50 D) None of the above