1. Cash in the process of collection is
A. a deposit at another financial institution.
B. a Fed funds transaction.
C. checks the bank owes other institutions that have not yet been paid.
D. checks that the bank is owed but has not yet collected.
2. For a bank with a positive duration gap, an increase in interest rates will
A. increase the likelihood of insolvency.
B. decrease the likelihood of insolvency.
C. not affect the likelihood of insolvency.
D. result in increased loan trading.