If Rate-Sensitive Assets Equal $500 Million and Rate-Sensitive Liabilities Equals

question 17

Multiple Choice

If rate-sensitive assets equal $500 million and rate-sensitive liabilities equals $400 million, what is the expected change in net interest income if rates fall by 1%?

• A) Net interest income will increase by $1 million.
• B) Net interest income will fall by $1 million.
• C) Net interest income will increase by $10 million.
• D) Net interest income will fall by $10 million.
• E) Net interest income will be unchanged.

---

Definitions:

Binge Eating

A disorder characterized by recurrent episodes of eating large quantities of food, often quickly and to the point of discomfort.

Excessively Muscular

Describes a physical state characterized by an unusually large amount of muscle mass, beyond what is considered typical or necessary.

High Self-Evaluation

A positive assessment of oneself that includes confidence in one’s abilities, qualities, and judgment.

Perfectionist Standards

Extremely high or unrealistic expectations for oneself or others, often leading to stress, anxiety, and dissatisfaction.