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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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