Question: Question Completion Status: The Harris State Bank has $2,000 in total assets (all of which are earning assets), $500 of which will be repriced in

Question Completion Status: The Harris State Bank has $2,000 in total assets (all of which are earning assets), $500 of which will be repriced in the next 90 days. This bank also has $1,600 in total liabilities, $1,000 of which will be repriced in 90 days. The bank currently earns 9 percent on its assets and pays 4 percent on its liabilities. If interest rates on both assets and liabilities rise by 2 percent in the next 90 days, what should happen to this bank's net interest margin? It should fall by 2 percent. It should fall by 0.5 percent. It should fall by 4 percent. It should fall by 1 percent. It should not record any fall. 10 points saved QUESTION 10 The Tidewater State Bank has $1.000 in total assets (all of which are earning assets). $700 of which will be repriced within the next 90 days. This bank also has $800 in total liabilities, $400 of which will be repriced within the next 90 days Currently, the bank is earning 8 percent on its assets and is paying 5 percent on its liabilities I interest rates on both assets and liabilities rise by 2 percent in the next 90 days, what should happen to this bank's nes interest margin It should rise by 0.60 percent. It should rise by 2 percent. It should rise by 4 percent. It should rise by 1 percent. It should not show any rise. 10 points Save
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
