What would happen to banks profits if the interest rates

Assignment Help Econometrics
Reference no: EM13214471

A bank has $100 million in assets. 50% of the assets are interest sensitive. It has $80 million in liabilities of which 70% are interest sensitive. What would happen to bank's profits if the interest rates were to go up by 2%?

Reference no: EM13214471

Questions Cloud

Analyze the way banks are supervised in the us : Consider the role the U.S. government has taken in the regulation of banks, as well as the history of major banking regulations, and predict the next major regulatory move by the U.S. government. Analyze the way banks are supervised in the U.S.
Explain the ions are evenly distributed throughout : fluoride ions, calcium ions, and several other dissolved ions. The ions are evenly distributed throughout the water. Which term or terms could be used to describe this sample of tap water?
Calculate the weighted average cost of capital : Calculate the cost of debt. Explain your answer. How would you restructure the firm's debt? Explain your answer. Please used at least 3 references.
Compute the heat of hydrogenation of naphthalene : calculate the heat of hydrogenation of naphthalene. Does this value provide any evidence for aromatic character in naphthalene?
What would happen to banks profits if the interest rates : A bank has $100 million in assets. 50% of the assets are interest sensitive. It has $80 million in liabilities of which 70% are interest sensitive. What would happen to bank's profits if the interest rates were to go up by 2%
Find out the presence of either reactants : Two future experiments are the syntheses of phenacetin and dibenzalacetone. Which, if any, of the qualitative tests performed in this lab could be used to determine of the presence of either reactants
What is the highest fixed cost you would be willing to pay : You are looking at the hat market. Hats sell for $15 each, and the variable cost of producing hats is Cv(H)=.25*H^2, with marginal cost MC(H)=.5*H. What is the highest fixed cost you would be willing to pay and still enter the market
Describe which policy would a supply-sider prefer : Which policy would a supply-sider prefer, an across-the-board tax reduction in income tax rates or a package of tax-relief measures that would give every household a $200 tax rebate and allow them to deduct the interest they pay on credit card pur..
Explain which one of the following pairs of acids : Which one of the following pairs of acids and conjugate bases is incorrectly labeled or incorrectly matched?

Reviews

Write a Review

Econometrics Questions & Answers

  Estimating outcomes of an experiment

A quality control inspector chooses a part to be tested. The part is then declared acceptable, repairable, or scrapped. Then another part is tested.

  By what percent did gdp decline

According to the News on page 159, (a) By what percent did GDP decline (b) How much output was lost in the $14 trillion economy (c) How much income did this represent for each of the 300 million U.S. citizens

  Detrmine the income elasticity of demand

The demand for haddock has been estimated as log Q = a=b log p=cl log I = d log Pm Where Q= quantity of haddock sold in New England P = price per pound of haddock I =a measure of personal income in the New England region and Pm= an index of the pr..

  Will opportunity cost of producing ethanol in us increase

Ethanol can be produced from either sugar or corn. A gallon of ethanol cost 90¢ to produce from Brazilian sugarcane and $1 to produce from U.S.corn. The U.S. Department of Agriculture expects 20 percent of the corn harvest to be used to produce et..

  Which of the two people is less likely to take on risk

A driver faces a 5% probability that his car will be in an accident and will be worth nothing. Consider three drivers with cars that have value $30,000. Abdulla's utility function over the value of his car W is u(W) = ln(1 + W).

  Calculate what happens to the income of workers

What is each orchard's labor demand as a function of the daily wage W? What is the market's labor demand?b. Ectenia has 200 workers who supply their labor inelastically. Solve for the wage W. How many workers does each orchard hire? How much profit..

  Analyze the npv of an image

Hurricane delayed the cash inflows that the managers of firm Metro expected from a project that being built and increased the cash outflows over the next two years. the NPV of this project is now negative.

  Calculate the labor-force participation rate

Suppose that the country of Bigu has a population of 127 million, of which 83 million are in the working-age population. Of those, 25 million are not in the labor force and 52 million are employed. a Calculate the working-age population as a percen..

  What was the growth in the overall productivity of labor

a nation's rate in 2003 was 5%. It accumulated capital at a rate of 5% and added to its employment of labor at a rate of 5%. The proportionate increase in real GDP in response to a proportionate increase in capital was 0.2, and the proportionate r..

  How to interpret for regression coefficient of growth rate

The regression coefficient indicates that the PE ratio of a firm that with a higher growth rate will, on average, be 0.948 points times lower than a firm with a lower growth rate. interpretation for the regression coefficient ofGrowth Rate

  Calculate the size of the endowment

junstin.Ting Corporation wants to establish a scholarship in the company's name at a university. The firm wants the scholarship to provide a quarterly award of $4500. The university's scholarship foundation will invest the endowment in a fund that..

  For the perfectly competitive firm find total revenue

Discuss the differences you observe in your answers above between the monopoly and perfectly competitive firm. x-axis 0 8 18 21 30 price and cost per unit y-axis 0 20 33 35 40 quanity.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd