Does the slope of the interest yield curve typically have a substantial impact on a bank's net interest margin?

Question

Options

• ANo, it doesn't, since the slope of the yield cure is unrelated to the spread between short-term and long-term
• BNo, it doesn't. There isn't any link at all between the slope of the interest yield curve and a bank's net
• CYes it does. In banking, long-term rates usually apply to bank deposits and money market borrowings
• DYes it does. Long-term rates usually apply to a bank's assets (loans, securities, etc.) and the short term

• A
  3% (1)
• B
  6% (2)
• C
  17% (6)
• D
  74% (26)

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