A local commercial bank accepts mostly short-term deposits and makes mostly longer-term fixed-rate loans. It will...
A local commercial bank accepts mostly short-term deposits and makes mostly longer-term fixed-rate loans. It will be adversely affected if the Fed ________________.
| A. |
Maintains a stable money supply |
|
| B. |
Raises interest rates incrementally over a relatively short period of time |
|
| C. |
Monetizes the debt |
|
| D. |
Uses repurchase agreements to inject reserves into the banking system |
Homework Answers
Option B Raises interest rates incrementally over a relatively short period of time ..In this case, cost of liabilities for the bank will increase but return on assets will not increase hence NIM will decrease
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A local commercial bank accepts mostly short-term deposits and
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some conclusions and contributes of this paper. I need this for my
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Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS
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