5. A bank has the following asset and liability portfolios. Liabilities and Capital Firm (in billion S Firm (in billion $ Required reserves Commercial loans 4-1 Demand deposits NOW accounts MMDAs CDs 25 | 15% 10% 17 20% Floating-rate 30 | 20% Fixed-rate Total Consumer loans Mortga 20 | 11% 10 20% 10 17% 35% 10% Short-term From 1 to 5 years Total Long-term bonds Capital 30 Floating-rate 513% 10 17% 5 | 3% Total Treasury securities Short-term Long-term 7% 18% 115% Total Long term Corporate securities High-rated Medium-rated 0 | 5% 10 15% Total Long-term municipal securities 0 | 3% 0 | 2% High-rated Moderate-rated Total Fixed assets Total Assets 5% | Total liabilities and capital | 100 00% 100 | 100% Calculate the bank's interest rate gap and gap ratio. Based on the numbers, what interest ra does the bank face? te ris a) Evaluate the bank's liquidity, capitai adequacy, asset quality based on the balance sheet. For an type of bank risk that appears to be higher than the industry, explain how the balance sheet be restructured to reduce the risk. b)