Practice_Chapters_24_and_25[1]

Practice_Chapters_24_and_25[1] - Practice Chapters 24 and...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Practice Chapters 24 and 25 Student: ___________________________________________________________________________ 1. If a bank has more rate-sensitive liabilities than rate-sensitive assets, then a(n) _________ in interest rates will _________ bank profits. A. increase; reduce. B. decline; not affect. C. decline; reduce. D. increase; increase. First National Bank Table 24.1 2. Referring to Table 24.1, First National Bank has a gap of _________. A. +30. B. -30. C. 60. D. 0. 3. Referring to Table 24.1, if interest rates rise by 5 percentage points, then bank profits (measured using gap analysis) will A. increase by $1.5 million. B. decline by $1.5 million. C. decline by $2.5 million. D. decline by 0.5 million. 4. If a bank has a duration gap of 2 years, then a rise in interest rates from 6 percent to 9 percent will lead to A. a rise in net interest income of 5.66 percent. B. a rise in the market value of its net worth of 5.66 percent. C. a fall in the market value of its net worth of 5.66 percent.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 3

Practice_Chapters_24_and_25[1] - Practice Chapters 24 and...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online