Assume the same information [Table 1] as in the previous question. Calculate the expected change in the net interest income for the bank if interest r ise by 1.2 percent on RSAS and by 1 percent on RSLs. -$188,000 $188,000
Assume the same information [Table 1] as in the previous question. Calculate the expected change in the net interest income for the bank if interest r ise by 1.2 percent on RSAS and by 1 percent on RSLs. -$188,000 $188,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Assume the same information [Table 1] as in the previous question.
Calculate the expected change in the net interest income for the bank if interest rates
rise by 1.2 percent on RSAS and by 1 percent on RSLS.
4
-$188,000
$188,000
$199,400
-$225,600
-$199,400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8342b035-9205-4b5f-836c-08881ca83705%2F47ea9ea1-1d61-4101-8e53-31d7378f4c5c%2Fo7x065s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assume the same information [Table 1] as in the previous question.
Calculate the expected change in the net interest income for the bank if interest rates
rise by 1.2 percent on RSAS and by 1 percent on RSLS.
4
-$188,000
$188,000
$199,400
-$225,600
-$199,400
![[Table 1] Consider the following balance sheet for MMC Bancorp (in millions of
dollars):
Assets
1. Cash and due from
2. Short-term consumer loans
(1-year maturity)
3. Long-term consumer loans
(2-year maturity)
4. Three-month T-bills
5. Six-month T-notes
6. 3-year T-bonds
7. 10-year, fixed-rate mortgages
S. 30-year, floating rate mortgages
(reset every nie months)
9. Premises
Total Assets
$6.25
62.50
31.30
37.50
43.70
75.00
25.00
50.00
6.25
$337.50
Liabilities and Equity
1. Equity capital (fixed)
2. Demand deposits
3. One-month CDs
4. Three-month CDs
5. Three-month bankers' acceptances
6. Six-month commercial paper
7. 1-year time deposits
8. 2-year time deposits
Total Liabilities and Equity
$25.00
50.00
37.50
50.00
25.00
75.00
25.00
50.00
$337.50](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8342b035-9205-4b5f-836c-08881ca83705%2F47ea9ea1-1d61-4101-8e53-31d7378f4c5c%2Fb99ro53_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[Table 1] Consider the following balance sheet for MMC Bancorp (in millions of
dollars):
Assets
1. Cash and due from
2. Short-term consumer loans
(1-year maturity)
3. Long-term consumer loans
(2-year maturity)
4. Three-month T-bills
5. Six-month T-notes
6. 3-year T-bonds
7. 10-year, fixed-rate mortgages
S. 30-year, floating rate mortgages
(reset every nie months)
9. Premises
Total Assets
$6.25
62.50
31.30
37.50
43.70
75.00
25.00
50.00
6.25
$337.50
Liabilities and Equity
1. Equity capital (fixed)
2. Demand deposits
3. One-month CDs
4. Three-month CDs
5. Three-month bankers' acceptances
6. Six-month commercial paper
7. 1-year time deposits
8. 2-year time deposits
Total Liabilities and Equity
$25.00
50.00
37.50
50.00
25.00
75.00
25.00
50.00
$337.50
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education