Bank of the Atlantic Has Liabilities of $4 Million with an Average

question 124

Multiple Choice

Bank of the Atlantic has liabilities of $4 million with an average maturity of two years paying interest rates of 4.0 percent annually.It has assets of $5 million with an average maturity of 5 years earning interest rates of 6.0 percent annually.What is the bank's net interest income in dollars in year 3,after it refinances all of its liabilities at a rate of 6.0 percent?

• A)-$60,000.
• B)-$140,000.
• C)+$140,000.
• D)+$60,000.

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Definitions:

Attention And Perception

The cognitive processes that allow individuals to focus on specific stimuli and interpret the sensory information from their environment.

Neonate

A newborn infant up to 1 month old.

Reflexive Behaviors

Automatic, involuntary responses to specific stimuli without conscious thought process involved.

Instinctual Behaviors

Innate, fixed patterns of action that are performed in response to specific stimuli, often essential for an organism's survival.