Question: Consider the table below: Assets Liabilities Rate sensitive $20,000,000 $50,000,000 Fixed-rate $85,000,000 $45,000,000 QUESTION 1 Compute the income gap QUESTION 2 If interest rates rise

Consider the table below: "Assets" "Liabilities" "Rate sensitive" $20,000,000 $50,000,000 "Fixed-rate" $85,000,000 $45,000,000 QUESTION 1 Compute the income gap QUESTION 2 If interest rates rise by five percentage points, will profits decline or increase? By how much ($ amount)

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