Bank of the Atlantic Has Liabilities of $4 Million with an Average

question 12

Multiple Choice

Bank of the Atlantic has liabilities of $4 million with an average maturity of two years paying interest rates of 4.0 percent annually.It has assets of $5 million with an average maturity of 5 years earning interest rates of 6.0 percent annually.What is the bank's net interest income in dollars in year 3, if it refinances all of its liabilities at a rate of 8.0 percent?

• A)-$20,000.
• B)-$10,000.
• C)-$15,000.
• D)+$20,000.
• E)+$10,000.

---

Definitions:

Physiological Arousal

A physical state of heightened alertness and readiness, often accompanied by increased heart rate and blood flow.

Sexual Deviance

Behaviors or desires that deviate from societal norms or expectations regarding sexuality.

Unrealistically Optimistic

Having an overly positive outlook that fails to consider realistic limitations or potential negative outcomes.

Depressed People

Individuals who are experiencing a pervasive and persistent low mood that is often accompanied by low self-esteem and by a loss of interest or pleasure in normally enjoyable activities.