If the First National Bank Has a Gap Equal to a Negative

question 139

Multiple Choice

If the First National Bank has a gap equal to a negative $30 million,then a 5 percentage point increase in interest rates will cause profits to

• A)increase by $15 million.
• B)increase by $1.5 million.
• C)decline by $15 million.
• D)decline by $1.5 million.

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