If Interest Rates on Both Assets and Liabilities Fall by 2

question 141

Multiple Choice

If interest rates on both assets and liabilities fall by 2 percent in the next 90 days,what should happen to this bank's net interest margin?

• A)It should rise by 0.5 percent.
• B)It should fall by 0.5 percent.
• C)It should stay the same.
• D)It should rise by 2 percent.
• E)It should fall by 2 percent.

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