Consider the following repricing buckets: Repricing Bucket 1 day Assets Liabilities $240,000 $140,000 $200,000 $150,000 1 day to 3 months 3 to 6 months $200,000 $200,000 6 to 12 months 1 to 5 years Over 5 years $500,000 $160,000 $150,000 $260,000 $50,000 $200,000 What is the annualised change in the bank's future net interest income if the average rate change for assets and liabilities that can be repriced within one year is an increase of 0.5%? O -$155 $155 -$1550 $1550 O None of the given answers.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter16: Information, Risk, And Insurance
Section: Chapter Questions
Problem 8RQ: What are some ways that someone looking for a loan might reassure a bank that is faced with...
icon
Related questions
Question

Q. 18 - Attached as a screenshot 

Consider the following repricing buckets:
Repricing Bucket
|1 day
Assets
Liabilities
$150,000
$240,000
1 day to 3 months
3 to 6 months
$200,000
$140,000
$200,000
$200,000
$160,000
6 to 12 months
1 to 5 years
Over 5 years
$500,000
$150,000
$50,000
$260,000
$200,000
What is the annualised change in the bank's future net interest income if the
average rate change for assets and liabilities that can be repriced within one year is
an increase of 0.5%?
-$155
$155
-$1550
$1550
O None of the given answers.
Transcribed Image Text:Consider the following repricing buckets: Repricing Bucket |1 day Assets Liabilities $150,000 $240,000 1 day to 3 months 3 to 6 months $200,000 $140,000 $200,000 $200,000 $160,000 6 to 12 months 1 to 5 years Over 5 years $500,000 $150,000 $50,000 $260,000 $200,000 What is the annualised change in the bank's future net interest income if the average rate change for assets and liabilities that can be repriced within one year is an increase of 0.5%? -$155 $155 -$1550 $1550 O None of the given answers.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Cash Flow
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
ECON MICRO
ECON MICRO
Economics
ISBN:
9781337000536
Author:
William A. McEachern
Publisher:
Cengage Learning