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If Duration GAP is positive (caution! different answer choices), Question options: (OPTION 2 IS WRONG) 1) the bank's net worth suffers if rates fall 2)

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

Question options: (OPTION 2 IS WRONG)

1)

the bank's net worth suffers if rates fall

2)

the bank's net worth rises in value if rates rise

3)

the banks' net worth suffers if rates rise

4)

none of the above

An asset-sensitive GAP (income GAP > 0) will result in

Question options: (OPTION 1 IS WRONG)

1)

rising profits if interest rates fall

2)

falling profits if interest rates fall

3)

rising profits if interest rates stay unchanged

4)

none of the above

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