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In the following balance sheet, Loan A(8%, 3 year)= $150 Deposit A(5%, 2 years)=$250Loan B(11%, 4 years)= $200 Deposit B(7%, 3 year)= $100Total Assets = $350 Total Liabilities = $350The GAP 3 yr=-200 if all interest rates decrease by 3%, net impact on net interest income (ΔNII) is      a. +$6 b. +$7 c. +$8 d. +$9

In the following balance sheet, Loan A(8%, 3 year)= $150 Deposit A(5%, 2 years)=$250Loan B(11%, 4 years)= $200 Deposit B(7%, 3 year)= $100Total Assets = $350 Total Liabilities = $350The GAP 3 yr=-200 if all interest rates decrease by 3%, net impact on net interest income (ΔNII) is      a. +$6 b. +$7 c. +$8 d. +$9

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In the following balance sheet,
 
Loan A
(8%, 3 year)
= $150
 
Deposit A
(5%, 2 years)
=$250
Loan B
(11%, 4 years)
= $200
 
Deposit B
(7%, 3 year)
= $100
Total Assets
 
= $350
 
Total Liabilities
 
= $350
The GAP 3 yr=-200
 
if all interest rates decrease by 3%, net impact on net interest income (ΔNII) is 

 

 

a. +$6


b. +$7


c. +$8


d. +$9

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