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Bank A Assets Liabilities Rate-sensitive $60 million $30 million Fixed-rate $40 million $70 million (Refer to table) If the interest rate decreases by 3 percentage
Bank A
Assets | Liabilities | |
Rate-sensitive | $60 million | $30 million |
Fixed-rate | $40 million | $70 million |
(Refer to table) If the interest rate decreases by 3 percentage points, from 6% to 3%, what would happen to the bank profits? (Increase or decrease and how much?)
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