A shift from core deposits to non-core deposits will:
A)always increase the amount of fixed rate assets.
B)always increase the amount of rate-sensitive assets.
C)generally increase the amount of non-earning assets.
D)generally reduce net interest income.
E)b.and d.

Question

Quizplus · Accepted Answer

A shift from core deposits to non-core deposits generally reduces net interest income because non-core deposits often have higher interest costs, which can compress the net interest margin.

A Shift from Core Deposits to Non-Core Deposits Will