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# Since savings banks have to use short-term deposits

Author Message
Intern
Joined: 03 Nov 2018
Posts: 14
Location: India
Schools: LBS '21
GMAT 1: 580 Q44 V28
GMAT 2: 580 Q44 V28
GPA: 3.44
Since savings banks have to use short-term deposits  [#permalink]

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27 Jan 2019, 22:11
00:00

Difficulty:

45% (medium)

Question Stats:

33% (00:56) correct 67% (01:17) wrong based on 6 sessions

### HideShow timer Statistics

Since savings banks have to use short-term deposits to finance long-term fixed rate mortgage loans, they sometimes loose money when there is rise in short term rates and, on other hand, they are unable to raise the rates on the mortgage.

A when there is rise in short term rates and, on other hand, they are unable to raise
B when short term rates rise and they are unable to raise
C when rise in short term rates occurs and,correspondingly, there is no rise possible in
D with a rise in short term rates and they are unable to raise
E with short term rates on rise and no rise possible in
Math Expert
Joined: 02 Sep 2009
Posts: 52902
Re: Since savings banks have to use short-term deposits  [#permalink]

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27 Jan 2019, 22:32
dharam44 wrote:
Since savings banks have to use short-term deposits to finance long-term fixed rate mortgage loans, they sometimes loose money when there is rise in short term rates and, on other hand, they are unable to raise the rates on the mortgage.

A when there is rise in short term rates and, on other hand, they are unable to raise
B when short term rates rise and they are unable to raise
C when rise in short term rates occurs and,correspondingly, there is no rise possible in
D with a rise in short term rates and they are unable to raise
E with short term rates on rise and no rise possible in

Discussed here: https://gmatclub.com/forum/since-saving ... 06717.html
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Re: Since savings banks have to use short-term deposits   [#permalink] 27 Jan 2019, 22:32
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