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

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