First National Bank Assets Liabilities Rate-sensitive $80 million $50 million Fixed-rate $20 million $50 million According to the above balance sheet, if interest rates rise by 5 percentage points, say, from 10 to 15%, bank profits (measured using gap analysis) will increase by $ million (put a negative sign if it is a decrease). Question 34 options:
First National Bank Assets Liabilities Rate-sensitive $80 million $50 million Fixed-rate $20 million $50 million According to the above balance sheet, if interest rates rise by 5 percentage points, say, from 10 to 15%, bank profits (measured using gap analysis) will increase by $ million (put a negative sign if it is a decrease). Question 34 options:
Chapter11: Managing Transaction Exposure
Section: Chapter Questions
Problem 33QA
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First National Bank
|
Assets |
Liabilities |
Rate-sensitive |
$80 million |
$50 million |
Fixed-rate |
$20 million |
$50 million |
According to the above balance sheet, if interest rates rise by 5 percentage points, say, from 10 to 15%, bank profits (measured using gap analysis) will increase by $ million (put a negative sign if it is a decrease).
Question 34 options:
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