Happen to the bank net interest income

Assignment Help Business Management
Reference no: EM132162557

Suppose a bank has $250 million in variable-rate assets and $150 million in variable-rate liabilities. What would happen to the bank's net interest income if interest rates were to fall by 2%?

The answer is Net Interest income would fall by $2 million

Reference no: EM132162557

Questions Cloud

Evaluate in the decisions : When looking at your utility, you will find that this is very important to evaluate in the decisions that we have to make to know when to stop eating.
Should you use slang or jargon in a business letter : Should you use slang or jargon in a business letter? Does the following sentence require a comma or a semi-colon?
What is intellectual property : What are the public policy implications of information economics perspectives on IP? How does it differ from conventional economics?
What is the network form of organisation : What is the network form of organisation and why has it emerged in the new knowledge based economy?
Happen to the bank net interest income : What would happen to the bank's net interest income if interest rates were to fall by 2%?
Prepare a marketing plan to launch the new brand : Your Vice President of Beverage Marketing has asked you to prepare a marketing plan to launch this new brand in the U.S. market. She has asked you to conduct.
Explain the purpose of a code of ethics for a company : Explain the purpose of a code of ethics for a company. Be sure you consider who the code is directed toward: Leadership, employees, or customers?
Calculate and draw the reaction : Calculate and draw the reaction (or best reply) function of firm 1 (that is, calculate the profit-maximizing output of firm 1 for every possible output of firm
Discuss about the development of ethical products : Nowadays innovation are developed in many areas and countries but do you think that an innovation leads to the development of ethical products?

Reviews

Write a Review

Business Management Questions & Answers

  Important information about externalitywhat is an

important information about externalitywhat is an externality?why might externalities lead a firm to discharge too much

  Emotional vs factual sustainability plans

What does each vice president hope to achieve by using factual tone versus emotional issues and how effective is each style at encouraging the president to implement a sustainability plan?

  Against a target of zero inflation

Explain why some economists are against a target of zero inflation? Use a scholarly source to support your points.

  Explain the role of data in requirements development

Explain the role of data in requirements development. Explain which requirements categories need data and what types of data would be necessary.

  Major advantages of buying an existing business

All of the following are major advantages of buying an existing business over starting a new business EXCEPT:

  Advantages of specialized financial institutions

What are the advantages of specialized financial institutions?

  Determine the types of organizational records

Consider a fitness center. Determine the types of organizational records that the center has available. Explain how these records are used in terms of marketing efforts. Do they effectively generate a consumer profit? If not, what other types of i..

  Different functional structures used to implement

What are the characteristics of the different functional structures used to implement the cost leadership

  Garet approaches the manager and undercuts linda deal

After Linda and the manager strike a deal, Garet approaches the manager and undercuts Linda's deal. Garet is most likely liable for

  Various perspective and the interests of other people

What are the consequences of not looking at various perspective and the interests of other people involved, while making a responsible ethical decision?

  Follow-up letter for the position mentioned above

Perform a job search for a position of your choice at a company. Imagine that you are applying for this job. Upload a resume (either fictional or factual) in either chronological or functional formats. Follow the guidelines for formatting listed i..

  Competition is the disciplinarian of the market economy

Competition is the disciplinarian of the market economy. Explain your answer?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd