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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

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

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