If a bank has$$ $$50$ million in

rateminus$$sensitive

assets and$$ $$20$ million in

rateminus$$sensitive

liabilities then

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Part $1$

A$.$

a decrease in interest rates will increase bank profits.

B$.$

interest rate changes will not impact bank profits.

C$.$

a decrease in interest rates will reduce bank profits.

D$.$

an increase in interest rates will reduce bank profits.