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Consider the Following Table: How Does a Decrease

Question 8

Multiple Choice

Consider the following table: Consider the following table: How does a decrease in the average one-year interest rate of 50 basis points affect the FI's future net interest income? A) The NII decreases by $0.435. B) The NII increases by $0.435. C) The NII remains constant. D) The NII decreases by $0.39. How does a decrease in the average one-year interest rate of 50 basis points affect the FI's future net interest income?


A) The NII decreases by $0.435.
B) The NII increases by $0.435.
C) The NII remains constant.
D) The NII decreases by $0.39.

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