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If an Organisation Has a Repricing Gap Equal to a Positive

Question 13

Multiple Choice

If an organisation has a repricing gap equal to a positive $20 million,a 500 basis point increase in interest rates will cause profits to:


A) rise by $1.0 million.
B) rise by $10 million.
C) fall by $1.0 million.
D) fall by $10 million.

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