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3. A bank has rate-sensitive assets of $12 million and rate-sensitive liabilities of $10 million. What is it's $GAP? Will the bank's net interest

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3. A bank has rate-sensitive assets of $12 million and rate-sensitive liabilities of $10 million. What is it's $GAP? Will the bank's net interest income/margin go up or down if interest rates go up? (2.00 points) 4. Mention two specific cases of moral hazard problems in the banking industry that may occur due to regulation and government action. (1.50 points) 5

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