Use the Following Table to Answer the Question

question 55

Multiple Choice

Use the following table to answer the question :

-If interest rates rise by 5 percentage points,say from 10 to 15%,bank profits (measured using gap analysis) will

• A)decline by $0.5 million.
• B)decline by $1.5 million.
• C)decline by $2.5 million.
• D)increase by $2.0 million.

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Definitions:

Net Asset Value

The value per share of a mutual fund or ETF, calculated by dividing the total value of all the securities in the portfolio, minus liabilities, by the number of outstanding shares.

Year-End Assets

The total value of all assets held by an individual or corporation calculated at the end of the fiscal year.

Liabilities

Financial obligations or debts owed by a company or an individual to creditors, typically classified as current (short-term) or long-term.

Net Asset Value

The total value of a fund's assets minus its liabilities, often used in the context of mutual funds to determine the per share market value.