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3I0-012 · Question #50

3I0-012 Question #50: Real Exam Question with Answer & Explanation

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Question

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

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.

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