Angus Bank holds no excess reserves but complies with the reserve requirement. The required reserves ratio is

8%, and reserves are currently $25million.

The amount of deposits is $312.5 million. (Round your response to one decimal place.)

The reserve shortage created by a deposit outflow of $4million is $ 3.68

million. (Round your response to two decimal places.)

The cost of the reserve shortage if Angus Bank borrows in the federal funds market (assume the federal funds rate where did the -3.68 and $11040 come from??is 0.30 %)is $11,040

Suppose First National Bank holds

$100million in assets with an average duration of

5years, and it holds$85 million in liabilities with an average duration of

3years. Further suppose there is a5 -percentage-point

increase in interest rates. Calculate the percentage decrease in First National Bank's net worth relative to the total original asset value.

A5 -percentage-point increase in interest rates decreases First National Bank's net worth by__%

of the total original asset value

Suppose that you are the manager of a bank that has $15 million of fixed-rate assets, $30 million of rate-sensitive assets, $25 million of fixed-rate liabilities, and $20 million of rate-sensitive liabilities. Conduct a gap analysis for the bank, and show what will happen to bank profits if interest rates rise by 5 percentage points.

The change in bank profits is $___million