Consider the Following Table: How Does an Increase

question 39

Multiple Choice

Consider the following table: How does an increase in the average one-year interest rate of 50 basis points affect the FI's future net interest income ?

• A) The NII will not change.
• B) The NII will increase by $50.
• C) The NII will increase by $5.
• D) The NII will decrease by $50.