-Suppose Short-Term Interest Rates Increase by 1 Percent

question 28

Multiple Choice

$$\begin{array} { | l | c | c | l | c | c | } \hline \text { Assets } & \text { Amount } & \text { Rate } & \text { Liabilities } & \text { Amount } & \text { Rate } \\\hline \begin{array} { l } \text { Rate } \\\text { Sensitive }\end{array} & \$ 35,000,000 & 10 \% & \begin{array} { l } \text { Rate } \\\text { Sensitive }\end{array} & \$ 40,000,000 & 8 \% \\\hline \text { Fixed Rate } & \$ 21,000,000 & 9 \% & \text { Fixed Rate } & \$ 12,000,000 & 7 \% \\\hline \text { Non-earning } & \$ 4,000,000 & & \text { Equity } & \$ 8,000,000 & \\\hline\end{array}$$
-Suppose short-term interest rates increase by 1 percent. Calculate the change in net interest income after the interest rate increase.

• A)$50,000.
• B)$18,900.
• C)$40,400.
• D)$53,900.
• E)$32,000.

---

Definitions:

Treatment Effectiveness

The degree to which a treatment achieves its intended outcome(s) in a real-world (clinical or practical) setting.

Between-Groups Designs

Experimental designs where different groups of participants are exposed to various conditions or treatments, allowing for comparisons between group outcomes.

Posttest-Only Control

A research design where subjects are assigned to experimental or control groups and are tested on the dependent variable only after the treatment.

Confidentiality

The ethical and often legal obligation to keep someone's personal information private, especially within a professional or research context.