ACI
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?
The correct answer is D. Net interest income would hardly change at all. See the full explanation below for the reasoning.
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.
How the community answered
(41 responses)- A5% (2)
- B2% (1)
- C10% (4)
- D83% (34)
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