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A Bank Has the Following Balance Sheet: If the Spread

Question 24

Multiple Choice

A bank has the following balance sheet: A bank has the following balance sheet:   If the spread effect is zero and all interest rates decline 50 basis points,the bank's NII will change by ________________ over the year. A) $0 B) $400,000 C) -$400,000 D) $700,000 E) -$700,000 If the spread effect is zero and all interest rates decline 50 basis points,the bank's NII will change by ________________ over the year.


A) $0
B) $400,000
C) -$400,000
D) $700,000
E) -$700,000

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