Question: Risk Bank has a positive GAP position. If a parallel shift upward in interest rates occurs, the banks net interest income would be expected to:

Risk Bank has a positive GAP position. If a parallel shift upward in interest rates occurs, the banks net interest income would be expected to:

Question 24 options:

Decrease by an amount equal to GAP

Decrease by an amount equal to GAP times the change in rates

Increase by an amount equal to GAP

Increase by an amount equal to GAP times the change in rates

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