If Interest Rates Decrease 40 Basis Points (0

question 90

Multiple Choice

If interest rates decrease 40 basis points (0.40 percent) for an FI that has a cumulative gap of -$25 million, the expected change in net interest income is

• A)+$100,000.
• B)-$100,000.
• C)-$625,000.
• D)-$250,000.
• E)+$250,000.

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Definitions:

Developed Markets

Countries with highly industrialized economies, well-developed financial markets, and high standards of living.

Wage-related Expenses

Costs incurred by employers that are directly associated with the payment of wages to employees, including taxes, benefits, and insurance.

Socioeconomic Inequality

The disparities in income, wealth, and access to resources among different social and economic groups within a society.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, often driven by international trade and investment and aided by information technology.