If a bank has ________ rate-sensitive assets than liabilities, then ________ in interest rates will...

1) If a bank has ________ rate-sensitive assets than liabilities, then ________ in interest rates will increase bank profits.

A) more; a decline

B) more; an increase

C) fewer; an increase

D) fewer; a surge

2) If a bank has ________ rate-sensitive assets than liabilities, a ________ in interest rates will reduce bank profits, while a ________ in interest rates will raise bank profits.

A) more; rise; decline

B) more; decline; rise

C) fewer; decline; decline

D) fewer; rise; rise

3) If a bank\"s liabilities are more sensitive to interest rate movements than are its assets, then

A) an increase in interest rates will reduce bank profits.

B) a decrease in interest rates will reduce bank profits.

C) interest rates changes will not impact bank profits.

D) an increase in interest rates will increase bank profits.

4) The difference of rate-sensitive liabilities and rate-sensitive assets is known as the

A) duration.

B) interest-sensitivity index.

C) rate-risk index.

D) gap.