1. What forces cause interest rates to change? What kinds of risk do financial firms face...

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1. What forces cause interest rates to change? What kinds of risk do financial firms face when interest rates change? (Concept check question 7-3 from the book) 2. Commerce National Bank reports interest-sensitive assets of $870 million and Interest-sensitive liabilities of $625 million during the coming month. Is the bank asset sensitive or liability sensitive? What is likely to happen to the bank's net interest margin if interest rates rise? If they fall? (Problems and projects 7-3 from the book) 1. What forces cause interest rates to change? What kinds of risk do financial firms face when interest rates change? (Concept check question 7-3 from the book) 2. Commerce National Bank reports interest-sensitive assets of $870 million and Interest-sensitive liabilities of $625 million during the coming month. Is the bank asset sensitive or liability sensitive? What is likely to happen to the bank's net interest margin if interest rates rise? If they fall? (Problems and projects 7-3 from the book)