Which one of the following statements about interest rate movements is true?

Question

Options

• AAn upward parallel shift of interest rates will cause a loss of income if the rate-sensitivity of a bank's
• BA bank will lose income if it has more rate-sensitive liabilities than rate-sensitive assets.
• CFalling interest rates will always result in mark-to-market profits on short positions in fixed rate securities.
• DRising interest rates can result in mark-to-market losses on fixed-rate assets.

• A
  8% (3)
• B
  15% (6)
• C
  5% (2)
• D
  73% (29)

No community discussion yet for this question.