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3I0-012 · Question #449

What would happen to a bank's net interest income if it ran a zero gap in an environment of decreasing interest rates?

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Question

What would happen to a bank's net interest income if it ran a zero gap in an environment of decreasing interest rates?

Options

  • ANet interest income would increase slightly.
  • BNet interest income would increase considerably.
  • CNet interest income would decrease.
  • DNet interest income would hardly change at all.

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