If NVB has a negative repricing gap and market interest rates increase, what is the most likely short-run effect on net interest income ? ]]

Question

If NVB has a  negative repricing gap  and market interest rates increase, what is the most likely short-run effect on  net interest income ?  ]]>

Accepted Answer

Net interest income falls because funding costs reprice faster than assets.

Answer

Net interest income is unchanged.

Answer

Net interest income becomes immune to interest-rate risk.

Answer

Net interest income rises because asset yields increase immediately.

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