If interest rates on both assets and liabilities rise by 2 percent in the next 90 days,what would be the bank's net interest margin?
A)4 percent
B)4.4 percent
C)4.6 percent
D)2.4 percent
E)6 percent

Question

Quizplus · Accepted Answer

The net interest margin would remain unchanged at 4.6 percent because both assets and liabilities interest rates increase by the same percentage, thus maintaining the same margin between them.

If Interest Rates on Both Assets and Liabilities Rise by 2