If interest rates increase 75 basis points for an FI that has a gap of -$15 million,the expected change in net interest income is
A)-$112,500.
B)+$112,500.
C)+$1,125,0000.
D)-$1,125,0000.

Name: If interest rates increase 75 basis points for an FI that has a gap of -$15 million,the expected change in net interest income is A)-$112,500. B)+$112,500. C)+$1,125,0000. D)-$1,125,0000.
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Question

Quizplus · Accepted Answer

∆NII = (CGAP) x ∆R
∆NII = (-$15,000,000)F1F1F1S1F1F1F10 (+0.0075)= -$112,500.

If Interest Rates Increase 75 Basis Points for an FI