Question

which method attempts to analyse the impact of change in the interest rate on the net income under different interest rates and market income market price scenario​

Answer 1

Answer:

Earnings perspective involves analysing the impact of changes in interest rates on accrual or reported earnings in the near term. This is measured by measuring the changes in the Net Interest Income (NII) or Net Interest Margin (NIM) i.e. the difference between the total interest income and the total interest expense.