Calculate the existing Dollar Gap for the bank. Next, calculate the effect (change) on this bank's Net Interest

Income if interest rates fall or decrease by 1 percentage point or 100 bp. "%" denotes either the current

interest rate earned earned or paid on the designated asset or liability category. RSA and RSL denote interest

rate sensitive assets and liabilities, respectively, that are repriced within one year. Note, you do not have to

include either the existing or new level of Net Interest Income, as I'm only asking for the change in Net Interest

Income. Please show your work in order to receive credit.

Assets Amount % RSA Liabilities and Equity Amount % RSL

Cash 80 0.0% Non-interest deposits 100 0.0%

Securities 250 6.0% 100 NOW checking 200 2.0%

Loans, net 620 7.0% 248 MMDA 300 4.0% 300

Fed funds sold 0 CDs 150 5.0% 75

Non-earning assets 50 Fed Funds purchased 150 3.0% 150

Equity 100

$1,000 $1,000