Question

Thank you for your help!

There is much emphasis by regulators on the bank's sensitivity to interest rate movements, since many banks have liabilities that are repriced more frequently than their assets and are adversely affected by rising interest rates.

Question 40 options:

	True
	False

If regulators reduce bank failures by imposing regulations that reduce competition, bank efficiency will be increased

Question 41 options:

	True
	False

Answer 1

1) There is much emphasis by regulators on the bank's sensitivity to interest rate movements, since many banks have liabilities that are repriced more frequently than their assets and are adversely affected by rising interest rates. TRUE

2) If regulators reduce bank failures by imposing regulations that reduce competition, bank efficiency will be increased FALSE

If regulators reduce bank failures by imposing regulations that reduce competition, bank efficiency will be decreased.