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11. (16 points) The following table displays a simple income statement for a commercial bank during two consecutive years. The values shown are a ratio

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11. (16 points) The following table displays a simple income statement for a commercial bank during two consecutive years. The values shown are a ratio to total assets (as in class slides). Year 2 3.5% C% Total Interest Income Total Interest Expense Net Interest Income Non-interest Income Non-interest Expense Provision for Loans Pre-tax Net Income Net Income Year 1 3.5% 0.5% A% 2.0% 3.1% 0.6% B% 1.0% 2.0% 3.1% 0.6% D% a. (4 points) Determine the values of A and B in the table. A%= 3%. B7 = b. (4 points) Suppose the Federal Reserve raises the federal funds rate by 50 basis points during year 2. Is the value of C likely to be greater than or less than 0.5? Explain

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