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The Bank of Buffalo has the following portfolio of Assets and Liabilities per$100of Assets, If interest ratesrise by 1%, then the bank's profits will: AssetsLiabilitiesInterest
- The Bank of Buffalo has the following portfolio of Assets and Liabilities per$100of Assets,
- If interest ratesrise by 1%, then the bank's profits will:
- AssetsLiabilitiesInterest Sensitive Assets$60$20Non-interest SensitiveA$40$80Initial Interest Rate4%2%
- Decrease by $1.00
- Decrease by$0.40
- Increase by $1.00
- Increase by $0.40
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