Assuming a gap of $100 million, what will be the change in bank income if there is a 3 percent increase in interest rates?
A) $3 million
B) -$3 million
C) $30 million
D) Unable to tell with the information provided.

Question

Quizplus · Accepted Answer

The change in bank income due to a 3 percent increase in interest rates on a gap of $100 million would be $3 million (3% of $100 million).

Assuming a Gap of $100 Million, What Will Be the Change