Question: 1. nterest margin? 2 points 2. A bank has rate-sensitive assets of $100 million and rate-sensitivity liabilities of $90 million. Using Gap, explain how the

1. nterest margin? 2 points

2. A bank has rate-sensitive assets of $100 million and rate-sensitivity liabilities of $90 million. Using Gap, explain how the banks net interest margin will change if interest rates go down. 3 points

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