A U$.$S$.-$based commercial bank has the following assets and liabilities.

$\backslash$table$[[$Assets$,$Liabilities$],[\backslash$table$[[$$$200$ M $1-$year U$.$S$.$ loans $($made in U$.$S$.],[$dollars$)]],$$$300$ M $1-$year U$.$S$.$ CDs $($made in dollars$)],[\backslash$table$[[$$$500$ M equivalent $1-$year Japanese loans$],[($made in yen$)]],$$$400$ M $1-$year Japanese CDs $($made in yen$)]]$

a$.$ Explain whether the bank's asset position is net long or net short in yen. $(4$ points$)$

b$.$ Is the bank more likely to be concerned about the appreciation or depreciation of the yen relative to the U$.$S$.$ dollar? Why? $(6$ points$)$

c$.$ How could the bank arrange an on$-$balance$-$sheet hedge for its foreign exchange rate risk? Be sure to explain how the hedge helps the bank address its risk in your response. $(4$ points$)$