Question
Which of the following statement(s) is(are) correct. (I) A bank will have a positive GAP if it has more loans than liabilities. (II) Bank A
Which of the following statement(s) is(are) correct.
(I) A bank will have a positive GAP if it has more loans than liabilities.
(II) Bank A has more rate sensitive assets than rate sensitive liabilities. Net interest income of this bank will decline if interest rates fall.
Group of answer choices
II only
none
I only
I and II
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Analysis for Financial Management
Authors: Robert c. Higgins
8th edition
73041807, 73041803, 978-0073041803
