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Assets Liabilities Rate-Sensitive $375 million Rate-Sensitive $450 million Fixed-rate $525 million Fixed-rate $450 million What would happen to bank profits if the interest rates in

Assets

Liabilities

Rate-Sensitive

$375 million

Rate-Sensitive

$450 million

Fixed-rate

$525 million

Fixed-rate

$450 million

What would happen to bank profits if the interest rates in the economy decrease by 2%? Specifically, would the profits increase or decrease? How much?

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