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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Definitions:

Vacant

Vacant refers to a space or position that is unoccupied or not filled, available for use or to be taken by someone.

Uninhabitable

A condition of a property that makes it unsuitable for people to live in due to risks to health and safety.

Homeowners' Policy

Insurance coverage designed to protect homeowners from financial losses related to their home, such as damages from disasters, theft, or liability for accidents.

Liability Coverage

Insurance protection that provides the insured party with protection against claims resulting from injuries and damage to people and/or property.