1) Since the most recent financial crisis in the United States, banks have been holding a larger percentage of their assets in the form of cash. What impact does this have on the other categories of a bank's balance sheet, and how may this impact the overall economy?

2) Since December 2015, the Federal Reserve Bank has been raising interest rates. Using specific examples, explain what risks and opportunities this presents to banks as they manage interest rate risks. Would a bank prefer to have a positive or negative GAP? Why?