If Interest Rates on Both Assets and Liabilities Rise by 2

question 126

Multiple Choice

If interest rates on both assets and liabilities rise by 2 percent in the next 90 days,what would be this bank's net interest margin?

• A)4.2 percent
• B)5.3 percent
• C)5.8 percent
• D)6.2 percent
• E)7.8 percent

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Definitions:

Dimensional-analysis

A technique in chemistry and physics used to convert one unit of measurement to another, utilizing the fact that the dimensions of the original and converted measurement must be the same.

Reams

A measurement unit for paper, typically consisting of 500 sheets, but the number can vary depending on the type of ream.

Pages

The individual sheets of paper or digital screens in a book, document, or other publication, numbered for easy reference.

Dimensional-analysis

A method in physics and engineering to check or determine the relationship between different kinds of physical quantities by identifying their dimensions of measurements.