Multiple Choice
If a bank has a duration gap of two years,a fall in interest rates from 5% to 8% per annum will lead to a/an:
A) increase of 5.71% in the market value of its net worth.
B) fall of 5.71% in the market value of its net worth.
C) increase of 5.71% in net interest income.
D) fall of 5.71% in net interest income.
Correct Answer:
Verified
Correct Answer:
Verified
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