Which of the following is a true statement of those that opposed interstate banking:

1. Regulators who were against banks offering investment banking and insurance products
2. Increased number of mid-size banks
3. Drain deposit funds from the community and invest elsewhere
4. Lower prices for products and services

A bank that has a higher equity multiplier:

1. Is less likely to fail during economic downturn
2. Will tend to have higher liabilities
3. Is more likely to have lower liabilities
4. Is more likely to have a higher equity ratio

Gap management techniques require management to:

a. Perform an analysis of maturities associated with interest-bearing assets and interest-bearing liabilities

b. Perform an analysis of repricing opportunities associated with interest-bearing assets and interest-bearing liabilities

c. Price their interest-bearing assets and interest-bearing liabilities without being considering market interest rate changes

d. Both (a) and (b)

If a bank has a negative IS gap and interest rates are rising, possible management response likely is to:

1. Decrease interest sensitive assets
2. Increase interest sensitive asset.
3. Decrease interest sensitive liabilities
4. Either (b) or (c), or both (b) and (c)

If market interest rates are declining, the best interest-sensitive gap position for a bank is to:

a. Have a positive interest-sensitive gap

b. Have an interest sensitive ratio of 1.0

c. Have a negative-interest sensitive gap

d. Have a positive relative interest-sensitive gap

The purpose of asset-liability management is to:

1. Minimize loan losses
2. Control a banks sensitivity to changes in market interest rates
3. Maximize non-interest income
4. Control banks operating expenses