1. A bank has the following asset liability relationship. You expect interest rates to increase by 1%. Duration Asset|Duration Liability 1 100 3 200 100 3 1 300 200 4 300 a. As a bank Asset-Liability relationship manager, what are the steps that you are going to take and why? b. if interest rates increase by 2% would that double the effect? Why? 1. A bank has the following asset liability relationship. You expect interest rates to increase by 1%. Duration Asset|Duration Liability 1 100 3 200 100 3 1 300 200 4 300 a. As a bank Asset-Liability relationship manager, what are the steps that you are going to take and why? b. if interest rates increase by 2% would that double the effect? Why