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    Financial Institutions Management
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    Exam 8: Interest Rate Risk I
  5. Question
    If Interest Rates Decrease 50 Basis Points for an FI
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If Interest Rates Decrease 50 Basis Points for an FI

Question 74

Question 74

Multiple Choice

If interest rates decrease 50 basis points for an FI that has a gap of +$5 million, the expected change in net interest income is


A) + $2,500.
B) + $25,000.
C) + $250,000.
D) - $250,000.
E) - $25,000.

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