Multiple Choice
What is the impact over the next 30 days on the dealer's net interest income if all interest rates increase by 50 basis points?
A) Net interest income will decrease by $50,000.
B) Net interest income will decrease by $2.125 million.
C) Net interest income will decrease by $475,000.
D) Net interest income will decrease by $2.375 million.
E) Net interest income will increase by $750,000. [Refer to: 8-89]
Correct Answer:

Verified
Correct Answer:
Verified
Q66: An increase in interest rates<br>A)increases the market
Q67: What is this FI's maturity gap?<br>A)4.00 years.<br>B)4.28
Q68: If all interest rates decrease by 15
Q69: If the interest rate spread between rate
Q70: Large banks have adopted interest rate risk
Q72: What is market value of the two-year
Q73: Which of the following statements is true?<br>A)An
Q74: If interest rates decrease 50 basis points
Q75: The repricing model measures the impact of
Q76: What is the FI's maturity gap?<br>A)-2.03 years.<br>B)-2.50