If a bank has a positive duration gap of 2 years, then a RISE in interest rates from 6% to 9% will lead to

a rise in the market value of its net worth of 5.66%.

a rise in net interest income of 5.66%.

a fall in the market value of its net worth of 5.66%.

a fall in net interest income of 5.66%.

an unknown change.

If income GAP is positive (caution! different answer choices),

rate-sensitive assets are less than rate-sensitive liabilities

rate-sensitive assets are less than rate-sensitive liabilities

rate-sensitive assets rise in value more than rate-sensitive liabilities in periods of rising rates

interest income rises more than interest expense in periods of rising interest rates

If income GAP is negative,

		rate-sensitive assets are greater than rate-sensitive liabilities
		rate-sensitive assets are less than rate-sensitive liabilities
		rate-sensitive assets rise in value more than rate-sensitive liabilities in periods of rising rates
		interest income rises more than interest expense in periods of rising rates