Bank of the Atlantic Has Liabilities of $4 Million with an Average

question 100

Multiple Choice

Bank of the Atlantic has liabilities of $4 million with an average maturity of two years paying interest rates of 4.0 percent annually.It has assets of $5 million with an average maturity of 5 years earning interest rates of 6.0 percent annually.What is the bank's net interest income in dollars in year 3, after it refinances all of its liabilities at a rate of 6.0 percent?

• A)-$60,000.
• B)-$140,000.
• C)+$140,000.
• D)+$60,000.
• E)+$800,000.

---

Definitions:

Significance

The importance, meaning, or impact of something, particularly in terms of its influence or consequences in a broader context.

Yom Kippur War

A conflict fought in 1973 between Israel and a coalition of Arab states led by Egypt and Syria, occurring during the Jewish holy day of Yom Kippur.

Oil Crisis

A period marked by a significant increase in oil prices and a decrease in supply, leading to economic and political tensions globally.

United States

A country in North America consisting of 50 states and a federal district, known for its large size, diverse population, and influence in global affairs.