Question

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?

A. It should rise by 0.60 percent.

B. It should rise by 2 percent.

C. It should rise by 4 percent.

D. It should rise by 1 percent.

E. It should not show any rise.

Answer

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