8-83 What Is the Impact on Net Interest Income in Year

question 54

Multiple Choice

8-83 What is the impact on net interest income in year two if interest rates increase by 50 basis points at the end of year one? Ignore runoffs.

• A)+$0.210 million.
• B)+$0.300 million.
• C)-$0.300 million.
• D)-$0.210 million.
• E)+$0.600 million.

---

Definitions:

Credit Obligations

The responsibilities to repay debt incurred through borrowing or credit agreements.

Partially Assembled

Refers to products or goods that have been partially put together but require additional assembly or work to be considered complete.

Raw Logs

Unprocessed timber that has been cut but not yet transformed into lumber or other finished products.

Least Liquid

Assets that are hardest to convert into cash without significant loss in value.