1. Wyoming Bank has $2 million in rate-sensitive liabilities and $3 million in rate sensitive assets. Durango's gap is____, and Durango is probably more concerned about a(n) ____ in interest rates.
a. -$1 million; increase
b. -$1 million; decrease
c. $1 million; increase`
d. $1 million; decrease
2. If interest rates ____, banks with ____ duration gaps will be ____ affected.
a. rise; positive; positively
b. rise; positive; adversely
c. decrease; positive; adversely
d. decrease; negative; positively