Question
The T-account below shows the balance sheet of chase Assets: -Reserves $10 Million Loans $400 Million Securities $200 MIllion Liabilities: Deposits 500Million Borrowings from other
The T-account below shows the balance sheet of chase
Assets:
-Reserves $10 Million
- Loans $400 Million
- Securities $200 MIllion
Liabilities:
- Deposits 500Million
- Borrowings from other banks $20 M
- Borrowings from FED $50 M
- Bank Capital $40 M
Loans, securities, borrowing from other banks, and borrowings from the Fed are rate-sensitive. The other items are fixed-rate.
Based on the balance sheet above, if interest rate increases by 4.3%, how much would the profit of Chasechange (in millions of $)?
what if interest rate decreases by 3.4%, what is the change in net worth (in millions of $) of the bank? Round your answer to at least 2 decimal places. An increase innet worth should be entered as a positive number and a decrease innet worth should be entered as a negative number.
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