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If a bank's initial GAP is $100 million after which it doubles its rate-sensitive assets...

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Finance

If a bank's initial GAP is $100 million after which it doubles its rate-sensitive assets and liabilities, what is the expected change in net interest income if rates increase by 1 percentage points (Assume a parallel shift in the yield curve)?

A)Net interest income will fall by $1 million

B)Net interest income will fall by $2 million

C)Net interest income will increase by $1 million

d)Net interest income will increase by $2 million

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