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A bank has the following balance sheet: Assets Return Million $ Liabilities and Equity Cost Millions $ Cash 0.00 % $ 35 Fixed-rate deposits 3.50

A bank has the following balance sheet:

Assets

Return

Million $

Liabilities and Equity

Cost

Millions $

Cash

0.00

%

$

35

Fixed-rate deposits

3.50

%

$

240

Investments

(< 1 year)

4.00

%

$

200

Rate-sensitive deposits

2.00

%

$

260

Short-term loans

(< 1 year)

6.00

%

$

225

Fed fund borrowings

2.50

%

$

25

Long-term fixed-rate loans

(maturity

> 1 year)

6.75

%

$

250

Long-term borrowings at fixed rate

(maturity

> 1 year)

5.50

%

$

119

Equity

$

66

Total

$

710

Total

$

710

For a nine-month maturity bucket, the bank has ________ in fixed-rate assets and ________ in fixed-rate liabilities.

A) $425; $285

B) $285; $425

C) $285; $359

D) $359; $285

E) $250; $66

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