Below is Dragon Banks balance sheet (in billions)

Assets	Amount	Duration	Liabilities	Amount	Duration
Reserves	?	0	Time Deposit	$20	0.8
2-yr Floating Rate Bond	$10	2.0	1-year Federal Fund Purchased	?	1.0
Fixed rate Commercial	$10	3.0	Equity	$2
Fixed rate Consumer	$7	0.7

From past experience, you know that only 10% of Consumer Loans and 50% of Time Deposit are rate-sensitive.

a) If the manager wants NO duration interest rate risk, what amount (in billions) of Federal Fund Purchased and Reserves should the bank have?

b) Using the results in part (a), what will the net interest income be at year-end if interest rates on one-year RSAs increase by 2% but interest rates on one-year RSLs increase by 1%? (answer in mil)