If a bank's initial GAP is $100 million after which it doubles its rate-sensitive assets...
50.1K
Verified Solution
Link Copied!
Question
Finance
If a bank's initial GAP is $100 million after which it doubles its rate-sensitive assets and liabilities, what is the expected change in net interest income if rates increase by 1 percentage points (Assume a parallel shift in the yield curve)?
A)Net interest income will fall by $1 million
B)Net interest income will fall by $2 million
C)Net interest income will increase by $1 million
d)Net interest income will increase by $2 million
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
