Question: Consider the first item Interest Rates. (i) Analyse and explain why an increase of 100 basis points results in a decrease in profits. (ii) Analyse

Consider the first item Interest Rates. (i) Analyse and explain why an increase of 100 basis points results in a decrease in profits. (ii) Analyse and explain why, for the same change in interest rates in both directions, the magnitude of the corresponding changes in profits (ignoring the sign) are different.

Consider the first item Interest Rates. (i) Analyse and explain why an

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