Question
(TCO E & F)A bank has a positive repricing gap and estimates that the spread between RSAs and RSLs will move directly with interest rates.
(TCO E & F)A bank has a positive repricing gap and estimates that the spread between RSAs and RSLs will move directly with interest rates. If interest rates fall the bank's overall NII will _____.
rise
fall
necessarily be unchanged
rise, or fall, depending on the size of the spread affect relative to the size of the CGAP effect
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Fundamentals Of Financial Management
Authors: Richard Bulliet, Eugene F Brigham, Brigham/ Houston
11th Edition
1111795207, 9781111795207
