Question

The balance sheet at First National Bank is as follows: ___________________________________________________________           Rate Sensitive Assets $30million...

The balance sheet at First National Bank is as follows:

___________________________________________________________

          Rate Sensitive Assets $30million Rate Sensitive Liabilities $25million

          Fixed rate Assets         $20million Fixed Rate Liabilities        $25million

Predict what will happen to bank profits if interest rates rise from 2% to 4%.

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