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3I0-012 · Question #251

3I0-012 Question #251: Real Exam Question with Answer & Explanation

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Question

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

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

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