PKMC Module IV Practice Questions - Pasaran Kewangan Malaysia Certificate (PKMC) Module IV - Risk Management And Basic Derivatives Exam

Net Interest Income (NII) will increase because interest-rate-sensitive assets will reprice faster or in larger volume than interest-rate-sensitive liabilities. Net Interest Income (NII) will decrease because liabilities will reprice faster than assets. Net Interest Income (NII) will remain unchanged as the gap has no impact on NII, only affecting the economic value of equity. Net Interest Income (NII) will automatically fall to zero because the gap indicates a perfect mismatch.