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Consider the following balance sheet positions for a financial institution: Rate-sensitive assets Rate-sensitive liabilities $200 million $100 million What is the impact on net interest
Consider the following balance sheet positions for a financial institution:
Rate-sensitive assets | Rate-sensitive liabilities |
$200 million | $100 million |
What is the impact on net interest income of a 1 percent increase in interest rates?
Select one:
a. -$1,000,000
b. Neutral.
c. $1,000,000
d. None of the above.
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