If a bank has $100 million in total assets with $40 million in rate-sensitive assets, and $90 million in total liabilities with $50 million in rate-sensitive liabilities, then what will happen to the net interest margin (NIM) if interest rates rise by 5 percentage points, say from 10 to 15%? A) increase by 2% C) decline by $0.5 million B) decline by 0.5% D) increase by $2 million
If a bank has $100 million in total assets with $40 million in rate-sensitive assets, and $90 million in total liabilities with $50 million in rate-sensitive liabilities, then what will happen to the net interest margin (NIM) if interest rates rise by 5 percentage points, say from 10 to 15%? A) increase by 2% C) decline by $0.5 million B) decline by 0.5% D) increase by $2 million
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter12: Money, Banking And The Financial System
Section: Chapter Questions
Problem 3WNG
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