6.A bank has borrowed $250 and has received $500 worth ofdeposits. The bank has given out loans for $650 and has reserves of150, and the bank holds no securities or any other assets. The bankcapital is:

Question options:

	$50
	$100
	$500

7.Banks face interest-rate risk when interest rates change,because:

Question options:

	lower interest rates always lead to lower net income forbanks.
	assets always have high interest rates and liabilities alwayshave low interest rates, and banks are unwilling to change withmarket rates.
	assets and liabilities may have different times to maturity, sothey are affected differently by changes in market interestrates.