Net interest margin

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1. Petri Bank had interest revenues of $70 million last year and $30 million in interest expenses. About $300 million of Petri's $800 million in assets are rate-sensitive, while $600 million of its liabilities are rate-sensitive. Petri Bank's net interest margin is ____ percent.

a. 4.0

b. 3.6

c. 6.7

d. 5.0

2. Petri Bank had interest revenues of $70 million last year and $30 million in interest expenses. About $300 million of Petri's $800 million in assets are rate-sensitive, while $600 million of its liabilities are rate-sensitive. Petri Bank's gap is $____.

a. −300 million

b. 300 million

c. −500 million

d. 500 million

Reference no: EM131933824

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