If a Financial Institution's Net Interest Margin Is Immune to Interest-Rate

question 98

True/False

If a financial institution's net interest margin is immune to interest-rate risk,then so is its net worth.

---

Definitions:

Systematic Numbering System

An organized method of assigning numbers to items in a way that encodes information about the items.

Mission

A statement or vision that defines the core purpose and objectives of an organization, guiding its decision-making and strategic direction.

Organization

An organized group of people with a particular purpose, such as a business, government body, or charity.

Simple Payback

A financial metric that calculates the time required for an investment to generate cash flows or savings sufficient to recover its initial cost.