1. Assume a bank has the following balance sheet

   What is the net impact on net interest income (NII) for 3 YEARS. if interest rates are expected to change as specified in the Potential rate change, (compute the detailed ERA)

   Asset	Potential rate change	Amount		Liability	Potential Rate change	Amount
   Reserves at the Fed	N/A	$200		90-day CDs	0.85%	$200
   6-month T-Bills	2.00%	$400		360-day CDs	1.00%	$300
   3-year Consumer loans	3.00%	$600		Time Deposits 2- year	1.50%	$1200
   10-year mortgages	2.00%	$800		Stockholder s equity	N/A	$200
   Total		$2000		Total		$2000

   		$1.1
   		$2.2
   		$3.3
   		$4.4