Question
A bank has the following assets: $300 in Reserves, $350 in Short term Bonds, $550 in Fixed Rate Home Loans. It has the following Liabilities:
A bank has the following assets: $300 in Reserves, $350 in Short term Bonds, $550 in Fixed Rate Home Loans. It has the following Liabilities: $400 in Checkable Deposits, $500 in 6 month CDs, $100 in 2 year CDs If there is an increase in interest rates of 5%, what is the change in profit according to Gap analysis. (Use negative numbers if there is a loss.)
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Economics Of Money Banking And Financial Markets
Authors: Frederic Mishkin
5th Edition
0134734203, 978-0134734200
