If a bank has a positive interest-sensitive gap, one of the possible management responses would be to: wait for the interest rates to rise or be shorten asset decrease interest-sensitive increase interest-sensitive     The First National Bank of Trinidad reports a net interest margin of 5.83 percent. It has total interest revenues of $275 million and total interest expenses of $210 million. What will be the bank's earning assets total? $4,717 million $3,602 million $1,115 million $3,790 million     The First National Bank of Trinidad reports a net interest margin of 5.83 percent. It has total interest revenues of $275 million and total interest expenses of $210 million. This bank has earnings assets of $1,115. Suppose this bank's interest revenues rise by 8 percent and its interest expenses and earnings assets rise by 10 percent what is this bank's new net interest margin? 83 percent 09 percent 59 percent 38 percent

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter17: The Management Of Cash And Marketable Securities
Section: Chapter Questions
Problem 2P
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If a bank has a positive interest-sensitive gap, one of the possible management responses would be to:

  1. wait for the interest rates to rise or be
  2. shorten asset
  3. decrease interest-sensitive
  4. increase interest-sensitive

 

 

The First National Bank of Trinidad reports a net interest margin of 5.83 percent. It has total interest revenues of $275 million and total interest expenses of $210 million. What will be the bank's earning assets total?

  1. $4,717 million
  2. $3,602 million
  3. $1,115 million
  4. $3,790 million

 

 

The First National Bank of Trinidad reports a net interest margin of 5.83 percent. It has total interest revenues of $275 million and total interest expenses of $210 million. This bank has earnings assets of $1,115. Suppose this bank's interest revenues rise by 8 percent and its interest expenses and earnings assets rise by 10 percent what is this bank's new net interest margin?

  1. 83 percent
  2. 09 percent
  3. 59 percent
  4. 38 percent

 

 

If Fifth National Bank's asset duration exceeds its liability duration and if interest rates rise, the bank's net worth will                                              .

  1. decrease
  2. Increase
  3. stabilize
  4. be unaffected

 

 

A bond has a duration of 7.5 years. Its current market price is $1,125. Interest rates in the market are 7 percent today. It has been forecasted that interest rates will rise to 9 percent over the next couple of weeks. How will the bond's price change in percentage terms?

  1. The bond's price will rise by 2
  2. The bond's price will fall by 2
  3. The bond's price will fall by 02 percent.
  4. The bond's price will rise by 02 percent.

 

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