ASSETS			LIABILITIES
Floating rate mortgages	350		Demand deposits	250
(currently 15% annually)			(currently 6% annually)
30 years fixed rate loans			1 year CD	150
(currently 10% annually)	250		(currently 8% annually)
			Equity	200
	600			600

a.What is ECB expected net interest income (NII) at year end? (1mark)

b. What is ECB expected net interest income at year end if interest rates increase by five percent (5%). (2 mark)

c. What is ECB expected net interest income at year end if interest rates grew by 300 basis points on assets, but remain stable on liabilities. Top of Form