If interest rates decrease 40 basis points (0.40 percent)for an FI that has a cumulative gap of -$25 million,the expected change in net interest income is
A)+$100,000.
B)-$100,000.
C)-$625,000.
D)-$250,000.

Name: If interest rates decrease 40 basis points (0.40 percent)for an FI that has a cumulative gap of -$25 million,the expected change in net interest income is A)+$100,000. B)-$100,000. C)-$625,000. D)-$250,000.
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Quizplus · Accepted Answer

∆NII = (-$25,000,000)F1F1F1S1F1F1F10 (-0.004)= +$100,000.

If Interest Rates Decrease 40 Basis Points (0