8. If Banka Intesa Sanpaolo has been notified by its regulator that it needs to increase its capital by 5,000,000, and at the same time, it had planned on not paying any dividends this year, what can it do to rectify the situation?

13. A bank almost always insists that the firms it lends to keep compensating balances at the bank. Why?

24. Suppose you are the manager of a bank whose $100 billion of assets have an average duration of four years and whose $90 billion of liabilities have an average duration of six years. Conduct a duration analysis for the bank, and show what will happen to the net worth of the bank if interest rates rise by 2 percentage points. What actions could you take to reduce the banks interest-rate risk?