If a Bank Has a Negative GAP, a Decrease in Interest

question 46

Multiple Choice

If a bank has a negative GAP, a decrease in interest rates will cause interest income to __________, interest expense to__________, and net interest income to __________.

• A) increase, increase, increase
• B) increase, decrease, increase
• C) increase, increase, decrease
• D) decrease, decrease, decrease
• E) decrease, decrease, increase

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