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:

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
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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