Refer to the Following Table If Interest Rates Rise by 500 Basis Points,bank Profits (Measured

question 79

Multiple Choice

Refer to the following table:
$$\begin{array} { | l | l | c | } \hline { \text { Premier National Bank } } \\\hline & { \text { Assets } } & \text { Liabilities } \\\hline \text { Interest-sensitive } & \$ 60 \text { million } & \$ 90 \text { million } \\\hline \text { Fixed-rate } & \$ 70 \text { million } & \$ 40 \text { million } \\\hline\end{array}$$
If interest rates rise by 500 basis points,bank profits (measured using repricing gap analysis) will:

• A) fall by $0.5 million
• B) fall by $1.5 million
• C) fall by $3 million
• D) increase by $1.5 million

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Definitions:

Cuban Americans

A group of Americans who are either immigrants from Cuba or are of Cuban descent, with a unique cultural identity shaped by political, social, and economic factors.

Puerto Rican Americans

Individuals of Puerto Rican origin or descent who live in the United States, contributing to its cultural and social fabric.

Latino

Refers to people of Latin American origin or descent, often used interchangeably with Hispanic, although there are distinctions based on language and geography.

Charismatic Authority

Authority derived from the personal appeal of a leader.