11. How does the Farm Credit System generate its equity capital? 12. What procedures are followed? 13. What are the effects on farmers' costs of borrowing? 14. How do income tax obligations of the FCS Banks and associations affect farmers' costs of borrowing? Use the following information to answer questions 3 through 6. Farmers State Bank of Mumford is currently assessing interest rate risk. The information compiled includes the following items: Fixed-rate loans maturing in 6 months 5,000,000 Fixed-rate loans maturing in 12 months 12,000,000 All other fixed-rate loans 75,000,000 Fixed rate securities maturing in 6 months 15,000,000 Fixed rate securities maturing in 12 months 12,000,000 All other fixed-rate securities 5,000,000 Variable rate loans maturing in 6 months 12,500,000 Variable rate loans maturing in 12 months 32,500,000 All other variable-rate loans 45,000,000 Federal funds sold 66,000,000 NOW accounts 35,000,000 Money Market Deposit Accounts (MMDA) 15,000,000 Federal funds purchased 10,000,000 Passbook savings accounts 750,000 3 month certificates of deposit (CDs) 46,000,000 6 month certificates of deposit (CDs) 1 year certificates of deposit (CDs) 27,600,000 5 year certificates of deposit (CDs) 41,400,000 All variable rate loans at Farmers State Bank are repriced at the beginning of each month. Federal funds sold and purchased are change once a year. Interest rates on NOW and MMDA accounts change daily. 3. Categorize each of the items from Farmers State Bank into assets and liabilities. Circle the assets. 4. Next, categorize assets into: RSA 0 to 6 month repricing, RSA 7 to 12 month repricing All other assets. $ Categorize liabilities into: $ RSL 0 to 6 month repricing RSL 7 to 12 month repricing All other liabilities. 5. Determine the 6 month and 12 month dollar gap at Farmers State Bank 6. Determine the 6 month and 12 month gap ratio at Farmers State Bank