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9. Sunset Savings Bank currently has the following interest-sensitive assets and liabili- ties on its balance sheet with the interest-rate sensitivity weights noted. Interest-Sensitive Assets
9. Sunset Savings Bank currently has the following interest-sensitive assets and liabili- ties on its balance sheet with the interest-rate sensitivity weights noted. Interest-Sensitive Assets Federal fund loans Security holdings Loans and leases $ Amount $ 50.00 50.00 350.00 Rate Sensitivity Index 1.00 1.20 1.45 Interest-Sensitive Liabilities Interest-bearing deposits Money-market borrowings $ Amount $250.00 90.00 Rate Sensitivity Index 0.75 0.95 What is the bank's current interest-sensitive gap? Adjusting for these various interest rate sensitivity weights what is the bank's weighted interest-sensitive gap? Suppose the federal funds interest rate increases or decreases 50 basis points. How will the bank's net interest income be affected (a) given its current balance sheet makeup and (b) reflecting its weighted balance sheet adjusted for the foregoing rate-sensitivity indexes
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