Question: con Completion Status: O monthly payments borrowers make on fixed rate loans O monthly deposit service charges on checking-type accounts QUESTION 19 21 points Save

 con Completion Status: O monthly payments borrowers make on fixed rate

con Completion Status: O monthly payments borrowers make on fixed rate loans O monthly deposit service charges on checking-type accounts QUESTION 19 21 points Save Answer Bank of Montenegro has 150 billion euros of variable rate loans currently earning 3% annually. It has 200 billion in fixed-rate loans caming 5% annually. It has 200 billion in variable-rate deposits paying 2% annually and 180 billion in foed-rate time deposits paying 3% annully. You can ignote other assets and liabilities Determine the following: A) expected net interest income for next year 5 points (B) the rate-sensitive (Euro) gap for the next year, assuming no changes in loans or deposits, indicate whether it is positive or negative (4 points c) the expected change in euros of net interest income if interest rates fall by 50 basis points tomorrow. (4 points) (D) is the bank worried about falling or rising interest rates, or is it perfectly hedged? (3 points) (E) in the short term, explain what the bank can do to hedge against large unfavorable interest rate movements List at least two ways (5 points) For the toolbar, press ALT.F10 (PC) or ALT FNF10Mac Paragraph Arial 14px A 2 T. Q5 EXX ST 16 + 1 1992 . BEH 6) Cok Sue and Submit to me and submit. Click Save All Anton Save As Antwer Close Window Save and Sub MacBook Pro 20 000 con Completion Status: O monthly payments borrowers make on fixed rate loans O monthly deposit service charges on checking-type accounts QUESTION 19 21 points Save Answer Bank of Montenegro has 150 billion euros of variable rate loans currently earning 3% annually. It has 200 billion in fixed-rate loans caming 5% annually. It has 200 billion in variable-rate deposits paying 2% annually and 180 billion in foed-rate time deposits paying 3% annully. You can ignote other assets and liabilities Determine the following: A) expected net interest income for next year 5 points (B) the rate-sensitive (Euro) gap for the next year, assuming no changes in loans or deposits, indicate whether it is positive or negative (4 points c) the expected change in euros of net interest income if interest rates fall by 50 basis points tomorrow. (4 points) (D) is the bank worried about falling or rising interest rates, or is it perfectly hedged? (3 points) (E) in the short term, explain what the bank can do to hedge against large unfavorable interest rate movements List at least two ways (5 points) For the toolbar, press ALT.F10 (PC) or ALT FNF10Mac Paragraph Arial 14px A 2 T. Q5 EXX ST 16 + 1 1992 . BEH 6) Cok Sue and Submit to me and submit. Click Save All Anton Save As Antwer Close Window Save and Sub MacBook Pro 20 000

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