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If Interest Rates on Both Assets and Liabilities Decrease by 2

Question 155

Multiple Choice

If interest rates on both assets and liabilities decrease by 2 percent in the next 90 days,what should happen to this bank's net interest margin?


A) It should fall by 2 percent.
B) It should fall by 0.6 percent.
C) It should fall by 4 percent.
D) It should fall by 1 percent.
E) It should not show any fall.

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