-If All Interest Rates Decrease by 15 Basis Points, What
Question 85
Question 85
Multiple Choice
Assets 2-year commercial loans 1-year Treasury bills Par Amount $600 million $400 million Rate 10% Liabilities 1-year CDs Net Worth Par Amount $900 million $100 million Rate 7% -If all interest rates decrease by 15 basis points, what is the expected impact on the FI's net interest income? (Hint: Use the repricing model to answer this question.)
A) +$150,000. B) -$150,000. C) -$750,000. D) +$750,000. E) No changE.
Correct Answer:
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