The following information details the current rate sensitivity report for Gotbucks Bank, Inc. ($million).
-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.

Question

The following information details the current rate sensitivity report for Gotbucks Bank, Inc. ($million). 
-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.

Quizplus · Accepted Answer

A decrease of 25 basis points in all interest rates will reduce Gotbuck's net interest income by 0.25% over a planning period of 91 days.

The Following Information Details the Current Rate Sensitivity Report for Gotbucks