If Interest Rates Increase 75 Basis Points for an FI

question 105

Multiple Choice

If interest rates increase 75 basis points for an FI that has a gap of -$15 million, the expected change in net interest income is

• A)-$112,500.
• B)+$112,500.
• C)+$1,125,0000.
• D)-$1,125,0000.
• E)-$150,000.