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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 |
If interest rates suddenly climb from 10% to 12%, what change will occur in the value of RGV banks net worth? (2 points)
250,680 | ||
-205,354 | ||
+5.2 Millions | ||
+150,857 | ||
-1.5 Millions |
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