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The Harris State Bank has $ 2 , 0 0 0 in total assets ( all of which are earning assets ) , $ 5

The Harris State Bank has $2,000 in total assets (all of which are earning assets), $500 of which will be repriced in the next 90 days. This bank also has $1,600 in total liabilities, $1,000 of which will be repriced in 90 days. The bank currently earns 9 percent on its assets and pays 4 percent on its liabilities.
If interest rates on both assets and liabilities rise by 2 percent in the next 90 days, what should happen to this bank's net interest margin?
Group of answer choices
It should fall by 2 percent.
It should fall by 0.5 percent.
It should fall by 4 percent.
It should fall by 1 percent.
It should not record any fall.

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