The Change in a Bank's Net Income That Occurs Due

Multiple Choice

The change in a bank's net income that occurs due to changes in interest rates equals the overall change in market interest rates (in percentage points) times ____________.

A) volume of interest-sensitive assets
B) price risk of the bank's assets
C) price risk of the bank's liabilities
D) size of the bank's cumulative gap
E) None of the options is correct