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answer 2 and 3 please 1. The bank you own has the following balance sheet: Assets Liabilities Reserves $75llon Deposits S500 million Loans S525 million

image text in transcribedanswer 2 and 3 please
1. The bank you own has the following balance sheet: Assets Liabilities Reserves $75llon Deposits S500 million Loans S525 million Bank caita $100 million If the bank suffers a deposit outflow of S50 million with a required reserve ratio on deposits of 10%, what actions should you take? Suppose you are the manager of a bank that has S15 million of fixed-rate assets, $30 million of rate-sensitive assets, S25 million of fixed-rate liabilities, and S20 million of rate-sensitive liabilities. Conduct a gap analysis for the bank, and show what will happen to bank profits if interest rates rise by 5 percentage points. What actions could you take to reduce the bank's interest-rate risk? 2. 3. Suppose you are the manager of a bank whose S100 billion of assets have an average duration of six years and whose $90 billion of liabilities have an average duration of four 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 bank's interest-rate risk

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