Following are the given data for Bank A. It is assumed that the profit margin of bank is derived from the rate-sensitive assets and liabilities only. The current interest rate in market is 13%, but it is estimated to fall by 1%. With a view of integrated bank management, show how changes in interest rates affect the ROE of banks. Interpret the change in ROE due to the change in interest rate. ASSETS ($) LIABILITIES ($) Required reserve 1,504 Demand deposits 1,309 Commercial loan: NOW accounts 1,150 Floating-rate 1,200 MMDAS 1,800 Fixed-rate 507 CDs: Consumer loan 3,002 Short-term 150 Mortgages: 1-5 years Floating-rate 1,200 Long-term bonds 704 Fixed-rate 703 capital 2,900 Treasury securities: Short-term 1,900 Long-term 1,005 A ROE of Bank decreased due to changes in interest rate. B ROE of Bank had no effect due to changes in interest rate. C ROE of Bank is zero to changes in interest rate. D ROE of Bank increased due to changes in interest rate.