7. The is worth 1.2569 euros and the euro is worth $1.5568. Statistical analysis indicates that when the euro rises 1 percent against the dollar, the pound rises 0.5 percent against the euro and vice versa. A U.S. bank has assets of 40 million that mature in one year funded with liabilities of 55 million due in six months. The bank would be hurt by: f = 1.25 en . an increase in the value of the euro against the dollar. 17. a decrease in the value of the euro against the dollar. en = 1.55 ID. an increase in euro interest rates relative to pound interest rates. IV. an increase in pound interest rates relative to euro interest rates. A. I only B. I and II only C. I and III only D. II and IV only E. II and III only