Consider the following Balance Sheet for Forward Thinking Commercial Bank(FTCB) (in millions)

ASSETS			LIABILITIES
Floating rate mortgages	250		Demand deposits	300
(currently 14% annually)			(currently 5% annually)
30 years fixed rate loans			1 year CD	50
(currently 9% annually)	120		(currently 8% annually)
			Equity	20
	370			370

a. What is FTCB expected net interest income (NII) at year end? (1mark)

b. What is FTCB expected net interest income at year end if interest rates fell by seven percent (7%). (1 mark)

c. What is FTCB expected net interest income at year end if interest rates grew by 300 basis points on assets, but decline by 2% on liabilities.

(2 marks)

2. Provide a critical analysis and discussion on how the COVID-19 has affected the strategy of banks. Your response should include four monetary policy and central banking actions that are used to respond to the pandemic and the management of liquidity. (6marks). Support your views with at least three scholarly articles, journals or other credible sources At least 600 words.