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If a Financial Organisation Has a Repricing Gap Equal to a Negative

Question 45

Multiple Choice

If a financial organisation has a repricing gap equal to a negative $30 million,a 500 basis point drop in interest rates will cause profits to:

A) rise by $15 million.
B) rise by $1.5 million.
C) fall by $15 million.
D) fall by $1.5 million.

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