If Rate-Sensitive Assets Equal $600 Million and Rate-Sensitive Liabilities Equals

question 6

Multiple Choice

If rate-sensitive assets equal $600 million and rate-sensitive liabilities equals $800 million, what is the expected change in net interest income if rates fall by 1%?

• A) Net interest income will increase by $2 million.
• B) Net interest income will fall by $2 million.
• C) Net interest income will increase by $20 million.
• D) Net interest income will fall by $20 million.
• E) Net interest income will be unchanged.

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Definitions:

Developmental Reflexes

Involuntary responses or movements that are typical in infants, indicating normal brain and nerve activity development.

Normal Neurological Development

The typical progression of brain and nervous system growth and function, leading to mature cognitive, motor, and emotional abilities.

Exploring Objects

The behavior exhibited, particularly by infants and young children, of investigating and learning about objects through senses such as touch, vision, and taste.

Mouths

The openings in the body of many animals through which food is taken in and vocal sounds are emitted.