Which of the following would increase a bank’s Net Interest Margin, assuming all else stays the same? Choose Two an increase in the interest rate on its loans companies paying off some of their loans and the bank using the funds to purchase Treasury bonds customers switching a portion of their time deposits to demand deposits the bank issues additional equity and keeps the funds in cash an increase in the federal funds rate assuming the bank borrows more in the federal funds market than it lends
Which of the following would increase a bank’s Net Interest Margin, assuming all else stays the same? Choose Two an increase in the interest rate on its loans companies paying off some of their loans and the bank using the funds to purchase Treasury bonds customers switching a portion of their time deposits to demand deposits the bank issues additional equity and keeps the funds in cash an increase in the federal funds rate assuming the bank borrows more in the federal funds market than it lends
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 23QTD
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Which of the following would increase a bank’s Net Interest Margin, assuming all else stays the same? Choose Two
an increase in the interest rate on its loans |
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companies paying off some of their loans and the bank using the funds to purchase Treasury bonds |
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customers switching a portion of their time deposits to demand deposits |
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the bank issues additional equity and keeps the funds in cash |
||
an increase in the federal funds rate assuming the bank borrows more in the federal funds market than it lends |
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