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3. Consider the following balance sheet positions for a financial institution: - Rate-sensitive assets =$250 million. Rate-sensitive liabilities =$300 million - Rate-sensitive assets =$600 million.

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3. Consider the following balance sheet positions for a financial institution: - Rate-sensitive assets =$250 million. Rate-sensitive liabilities =$300 million - Rate-sensitive assets =$600 million. Rate-sensitive liabilities =$350 million - Rate-sensitive assets =$270 million. Rate-sensitive liabilities =$250 million a) Quantify the impact on net interest income of a 1% decrease in interest rates for each position b) Quantify the impact on net interest income of a 1% increase in interest rates for each position

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