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sensitive liabilities (RSLS) of four ban 3/4 The following information relates to rate-sensitive assets (RSAs) and rate- ) Bank A (R million) 1 000 Bank

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sensitive liabilities (RSLS) of four ban 3/4 The following information relates to rate-sensitive assets (RSAs) and rate- ) Bank A (R million) 1 000 Bank B (R million) (2.1.2) Bank C (R million) 1 500 Bank D (R million) (2.1.4) Rate-sensitive assets (RSAS) Rate-sensitive liabilities (RSLS) Gap 800 1 200 (2.1.3) 1 100 (2.1.1) -250 +300 0 2.1 Calculate the outstanding figures for 2.1.1 - 2.1.4 in the table. (4) 2.2 Briefly explain the effect on the net interest income (NII) of Bank A, should interest rates increase. Motivate your answer. (2) 2.3 Explain the impact of interest rate increases on net interest income for Bank D. (2) 2.4 State which bank benefits most from a decrease in interest rates. Motivate your answer. (2)

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