How will a decrease of 25 basis points in all interest rates affect Gotbuck's net interest income over a planning period of 91 days?
A)+$0.1875 million.
B)+$0.1250 million.
C)-$0.1375 million.
D)+$0.0625 million.
E)0 [Refer to: 8-93]

Question

Quizplus · Accepted Answer

A decrease of 25 basis points in all interest rates will increase Gotbuck's net interest income by $0.1875 million over a planning period of 91 days, as it implies a favorable change in the interest income and expenses balance.

How Will a Decrease of 25 Basis Points in All