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Consider the Following Table: How Does an Increase

Question 39

Multiple Choice

Consider the following table: Consider the following table: How does an increase in the average one-year interest rate of 50 basis points affect the FI's future net interest income ? A) The NII will not change. B) The NII will increase by $50. C) The NII will increase by $5. D) The NII will decrease by $50. How does an increase in the average one-year interest rate of 50 basis points affect the FI's future net interest income ?


A) The NII will not change.
B) The NII will increase by $50.
C) The NII will increase by $5.
D) The NII will decrease by $50.

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