What Is the Effect of a 100 Basis Point Increase

question 86

Multiple Choice

What is the effect of a 100 basis point increase in interest rates on the market value of equity of the FI? Use the duration approximation relationship. Assume r = 4 percent.

• A)-27.56 million.
• B)-28.01 million.
• C)-29.85 million.
• D)-31.06 million.
• E)-33.76 million.

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Definitions:

Prefrontal Cortex

The part of the brain located at the front of the frontal lobe, involved in complex behaviors, decision making, and moderating social behavior.

Upside Down

A position where something is turned so the top is now at the bottom.

Neural Activity

This pertains to the electrochemical actions and interactions within neurons and neural networks in the brain and nervous system.

Monitor Display

A visual output device that displays computer-generated images and information to the user.