The Following Information Is from First Yaupon Savings Association

question 93

Multiple Choice

The following information is from First Yaupon Savings Association. If all interest rates decrease by 15 basis points, what is the expected impact on the FI's net interest income? (Hint: Use the repricing model to answer this question.)

• A)+$150,000.
• B)-$150,000.
• C)-$750,000.
• D)+$750,000.
• E)No change.

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Definitions:

Excise Tax

A tax imposed on the sale of specific goods and services, such as fuel, tobacco, and alcohol.

Burden

The negative impact, stress, or obligation imposed by a situation, decision, or policy.

Efficiency Loss

The decrease in economic efficiency resulting from the inability to reach or achieve the equilibrium for a product or service.

Sacrificed Output

The production or output that is given up as a consequence of choosing one option over another, often discussed in opportunity cost analysis.