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Consider the following balance sheet for XBank: Assets Return Million $ Liabilities & Equity Cost Million $ Cash 0.0% $30 Fixed-rate deposits 3.5% $245 Investments

Consider the following balance sheet for XBank:

Assets

Return

Million $

Liabilities & Equity

Cost

Million $

Cash

0.0%

$30

Fixed-rate deposits

3.5%

$245

Investments (<1 year)

4.0%

$210

Rate-sensitive deposits

2.0%

$280

Short-term loans (< 1year)

6.0%

$230

Fed fund borrowings

2.5%

$15

Long-term fixed rate loans

Long-term borrowings at

(maturity > 1 year)

6.8%

$270

fixed rate (maturity >1 year)

5.5%

$135

Equity

$65

Total

$740

Total

$740

a) The bank's one-year repricing gap is ___________ (Million $)

b) If the spread effect is zero and all interest rates decline 50 basis points, the bank's NII will change by ________________ over the year.

c) For a 9-month maturity bucket the bank has _________________ in fixed-rate assets and _________________ in fixed-rate liabilities.

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