Consider the following table:

1/ What is the one-year gap adjusted for run-offs?

A. $0 B. $50 C. $55 D. $5

2/ How does an increase in the average one-year interest rate of 50 basis points affect the FI's future net interest income ? A. The NII will not change. B. The NII will increase by $50. C. The NII will increase by $5. D. The NII will decrease by $50

Assets Liabilities Item $ amount runoff S amount runoff item in less than one in more than one Iyear year s amount runoff S amount runoff in less than one in more than one year year Short-term consumer loans 55 $5 Equity $0 SO Long-term consumer loans $5 $6 Demand deposits $20 $10 S5 $2 Savings accounts $10 $5 Three-month T-notes $15 SO Three-month CDs $5 Six-month T-notes $2 Three-year notes S5 $2 Six-month CDs $10 SO 10-year mortgages $25 $10 $4 Six-month commercial $5 papers 30-year floating rate mortgages $20 $5 One-year term deposits $17 $4 Two-year term deposits $13 SO