For a Bank That Has a Positive Duration Gap, a Decrease

Question 31
Multiple Choice

For a bank that has a positive duration gap, a decrease in interest rates will cause a(n) _______ in the economic value of assets, a(n) _______ in the economic value of liabilities, and a(n) _______ in the economic value of equity. A)increase, decrease, increase B)increase, increase, decrease C)increase, increase, increase D)decrease, decrease, increase E)decrease, increase, decrease