QUESTION 12 First National Bank Assets Liabilities Rate- sensitive $20 million $50 million Fixed-rate $80 million $50 million If interest rates rise by 5 percentage points, say, from 10 to 15%, bank profits (measured as interest income minus interest payments) will a. decline by $0.5 million. b. decline by $1.5 million. c. decline by $2.5 million. d. increase by $1.5 million