If Interest Rates Decrease 50 Basis Points for an FI

question 74

Multiple Choice

If interest rates decrease 50 basis points for an FI that has a gap of +$5 million, the expected change in net interest income is

• A)+ $2,500.
• B)+ $25,000.
• C)+ $250,000.
• D)- $250,000.
• E)- $25,000.

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Definitions:

Instinctual

Relating to or based on instinct, innate patterns of behavior that are not learned.

Gender Role

A set of expectations that prescribes how females or males should think, act, and feel.

Nurturing

Providing care, support, and encouragement, fostering growth and development.

Androgens

A group of hormones that play a role in male traits and reproductive activity; present in both males and females.