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.

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Definitions:

Freudian Psychoanalysis

A psychological theory and therapy method developed by Sigmund Freud that emphasizes unconscious motivations and conflicts as determinants of human behavior.

Humanistic Philosophy

A philosophical approach that emphasizes the personal worth of the individual and the centrality of human values.

Contingency Management

A form of behavior therapy in which certain behaviors are reliably followed by well-defined consequences.

Client-Centered Therapy

A form of humanistic therapy associated with Carl Rogers, in which the therapist’s genuineness, unconditional positive regard, and empathic understanding are crucial to therapeutic success.