8-44 If Interest Rates Decrease 40 Basis Points (0

question 42

Multiple Choice

8-44 If interest rates decrease 40 basis points (0.40 percent) for an FI that has a cumulative gap of -$25 million,the expected change in net interest income is

• A)+$100,000.
• B)-$100,000.
• C)-$625,000
• D)-$625,000.
• E)+$250,000.

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Definitions:

Intermediation Revenue Model

The different methods by which third parties such as brokers (or “middlemen”) can generate money.

Commission

A fee paid for provided services typically a percentage of the item sold.

Home Renters

Individuals or groups who lease living spaces from landlords or property management companies for a specified period.

Intangible

Something that cannot be touched or physically measured, often referring to abstract qualities or assets like intellectual property or brand reputation.