If rate-sensitive assets equal $500 million and rate-sensitive liabilities equals $400 million, what is the expected change in net interest income if rates fall by 1%?
A) Net interest income will increase by $1 million.
B) Net interest income will fall by $1 million.
C) Net interest income will increase by $10 million.
D) Net interest income will fall by $10 million.
E) Net interest income will be unchanged.
Correct Answer:
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