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If depositors move money from their checking accounts to short-term CDs, this would _____ the rate sensitivity of the savings institution's liabilities to interest rate
If depositors move money from their checking accounts to short-term CDs, this would _____ the rate sensitivity of the savings institution's liabilities to interest rate movements.
a. increase
b. have no effect on
C) decrease
d. A or C, depending on the size of the savings institution
answer is A. why?
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The Oxford Handbook Of State Capitalism And The Firm
Authors: Mike Wright, Geoffrey T. Wood, Alvaro Cuervo-Cazurra, Pei Sun, Ilya Okhmatovskiy, Anna Grosman
1st Edition
0198837364, 978-0198837367
