What Would Happen to a Bank's Net Interest Income If

question 351

Multiple Choice

What would happen to a bank's net interest income if it ran a zero gap in an environment of decreasing interest rates?

• A) Net interest income would increase slightly.
• B) Net interest income would increase considerably.
• C) Net interest income would decrease.
• D) Net interest income would hardly change at all.

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Definitions:

Emotional Intelligence

The ability to understand, use, and manage your own emotions in positive ways to relieve stress, communicate effectively, empathize with others, overcome challenges, and defuse conflict.

Bottom-Line Performance

A measure of a company's financial performance, typically represented by its net income or profits.

Career Success

The achievement of personal work-related goals and objectives, often measured by advancements, recognition, and personal satisfaction.

General Intelligence

A measure of an individual's overall cognitive abilities, including reasoning, problem-solving, and learning.