If an organisation has _______ interest-sensitive assets than liabilities,a/an _______ in interest rates will increase the organisation's profits.
A) more; reduction
B) more; increase
C) less; increase
D) both [more; reduction] and [less; increase] are correct

Question

Quizplus · Accepted Answer

If an organization has more interest-sensitive assets than liabilities, an increase in interest rates will increase profits. This is because the income earned on the assets will increase more than the interest paid on the liabilities. Therefore, choice B, "more; increase" is the best choice.

If an Organisation Has _______ Interest-Sensitive Assets Than Liabilities,a/an _______

If an Organisation Has _ Interest-Sensitive Assets Than Liabilities,a/an _