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What will the decline in net interest income be at year-end if interest rates on RSAs increase by 2 percent but interest rates on RSLS increase by 1 percent? 2 million 1.25 million 0.75 million O 0.50 million O 0.25 million

What will the decline in net interest income be at year-end if interest rates on RSAs increase by 2 percent but interest rates on RSLS increase by 1 percent? 2 million 1.25 million 0.75 million O 0.50 million O 0.25 million

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider the following balance sheet for Watchover Savings Inc. (in millions): Floating-rate mortgages $75 (9%) 30-year fixed-rate loans $125 (7%) Total 2 million 1.25 million Assets 0.75 million 0.50 million 0.25 million $200 1-year time deposits $100 (6%) Liabilities and Equity 3-year time deposits $75 (7%) Equity What will the decline in net interest income be at year-end if interest rates on RSAs increase by 2 percent but interest rates on RSLs increase by 1 percent? Total $25 $200
Transcribed Image Text:Consider the following balance sheet for Watchover Savings Inc. (in millions): Floating-rate mortgages $75 (9%) 30-year fixed-rate loans $125 (7%) Total 2 million 1.25 million Assets 0.75 million 0.50 million 0.25 million $200 1-year time deposits $100 (6%) Liabilities and Equity 3-year time deposits $75 (7%) Equity What will the decline in net interest income be at year-end if interest rates on RSAs increase by 2 percent but interest rates on RSLs increase by 1 percent? Total $25 $200
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