alleryStart learning →A bank has Rs 500 cr rate-sensitive assets and Rs 350 cr liabilities. Rates rise 1%. Income change?
AFalls Rs 1.5 cr
BRises Rs 1.5 cr
CFalls Rs 8.5 cr
DRises Rs 8.5 cr
Answer & Solution
Correct answer: B. Rises Rs 1.5 cr
The gap is 500 - 350 = 150 cr, and 1% of 150 is 1.5 cr extra income.
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