Suppose, a bank has $200 million in rate sensitive assets and $150 million in rate...

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Accounting

Suppose, a bank has $200 million in rate sensitive assets and $150 million in rate sensitive liabilities for a 1-year time interval . Its estimated net interest income is $20 million. If the bank doubles in size without any change in interest rates and portfolio composition or mix, what will be its expected net interest income?

a.

$20 million

b.

$30 million

c.

$40 million

d.

$60 million

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