8-43 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.
E)-$150,000.

Name: 8-43 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. E)-$150,000.
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Question

Quizplus · Accepted Answer

The expected change in net interest income is -$15 million * 0.75% = -$112,500.

8-43 If Interest Rates Increase 75 Basis Points for an FI