Question: Will the banks ROA next year be higher or lower if market interest rates are higher? (Use the T-bill rate as a proxy for market

Will the bank’s ROA next year be higher or lower if market interest rates are higher? (Use the T-bill rate as a proxy for market interest rates.) Why? The information provided did not assume any required reserves. Explain how including required reserves would affect forecasted interest revenue, ROA, and ROE.

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