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The Following Is the Balance Sheet of Boston Bank

Question 82

Multiple Choice

The following is the balance sheet of Boston Bank. The average maturity of demand deposits is estimated at 2 years. The following is the balance sheet of Boston Bank. The average maturity of demand deposits is estimated at 2 years. -What is the impact on net interest income in year two if interest rates increase by 50 basis points at the end of year one? Ignore runoffs. A) +$0.210 million. B) +$0.300 million. C) -$0.300 million. D) -$0.210 million.
-What is the impact on net interest income in year two if interest rates increase by 50 basis points at the end of year one? Ignore runoffs.


A) +$0.210 million.
B) +$0.300 million.
C) -$0.300 million.
D) -$0.210 million.

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