5a. If market interest rates rise next year, the GAPwill rise causing ROA and ROE to rise. b, If Required Reserves were to add an additional 3% to the Uses for Funds causing a movement of funds from other accounts, then the GAP the ROA & ROE would all rise. c. Replacing $1 billion in five-year NCDs with $1 billion of 1-year NCDs will Increase ROA&ROE d. Provide a brief explanation as to why the bank would be cautious (concerned) with the longer-term impact of the decision to use fewer 5-year NCDs and more 1-year NCDs in part c. e. Shifting $1 billion from T-bills to make small business loans will raise ROA and would Increase (improve) its liquidity position f. The bank will replace $200 million in five-year NCDs with a variable rate ferred stock issue based on the 1-year NCD rate + 2%. This change in Capital I reduce ROA but Increase ROE. 5a. If market interest rates rise next year, the GAPwill rise causing ROA and ROE to rise. b, If Required Reserves were to add an additional 3% to the Uses for Funds causing a movement of funds from other accounts, then the GAP the ROA & ROE would all rise. c. Replacing $1 billion in five-year NCDs with $1 billion of 1-year NCDs will Increase ROA&ROE d. Provide a brief explanation as to why the bank would be cautious (concerned) with the longer-term impact of the decision to use fewer 5-year NCDs and more 1-year NCDs in part c. e. Shifting $1 billion from T-bills to make small business loans will raise ROA and would Increase (improve) its liquidity position f. The bank will replace $200 million in five-year NCDs with a variable rate ferred stock issue based on the 1-year NCD rate + 2%. This change in Capital I reduce ROA but Increase ROE