If Interest Rates Decrease 50 Basis Points for an FI

question 74

Multiple Choice

If interest rates decrease 50 basis points for an FI that has a gap of +$5 million, the expected change in net interest income is

• A)+ $2,500.
• B)+ $25,000.
• C)+ $250,000.
• D)- $250,000.
• E)- $25,000.