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Case #2 (20 marks: Your bank has the following balance sheet: Assets Liabilities Rate-sensitive S360 million Rate-sensitive $240 million Fixed-rate 250 million Fixed-rate 180 million

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Case #2 (20 marks: Your bank has the following balance sheet: Assets Liabilities Rate-sensitive S360 million Rate-sensitive $240 million Fixed-rate 250 million Fixed-rate 180 million Required: 1) What would happen to bank profits if the interest rates in the economy go down by 2%? 2) Is there anything that you could do to keep your bank from being so vulnerable to interest rate movements

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