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RGV banks cash flows from assets (loans) and liabilities (deposits) are as follows: Expected Cash Inflows from Assets Expected Cash Outflows from Liabilities Annual Period

RGV banks cash flows from assets (loans) and liabilities (deposits) are as follows:

Expected Cash Inflows from Assets

Expected Cash Outflows from Liabilities

Annual Period in Which Cash Receipts Are Expected

$550

$500

1

600

650

2

700

500

3

By how much would RGV banks net worth change if, instead of rising, interest rates fall from 10% to 7%?

+308,031

-420,950

+1.2 Millions

-5.2 Million

+549,875

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