betwech changes in interett fates and changes in net infercut incomo when CGA.P. is positive? Wben CGAP is negative? 6. Which of the following is an appropriate change to make on a bank's balance shect when GAP is negative, spetad is expected to remain unchanged, and interest rates are expected to rise? it. Replace fixed-rate loans with raife-tensitive loans. b. Replace murketable securities with fived tate louns. c. Replace fixedrate CDs with talesensitive CDs. d. Replace equity with demand deposits. c. Replace vault cash with marketable securitics. 7. If a bank manager was quite certain that interest rates were going to rise within the next six months, how should the bank manager adgust the bank's six-monthrepricing gap to take advantage of thes anticipated rise? What if the manager believed rates would fall in the next six months? 8. Consider the following balance sheet postions for a financial institution: - Ratesensitive assets - $200 mithion Rate-sensitive fiabilities =$100 million - Ratesensitive assets $100 million Rate-senstrve liabilities =$S50 milhion - Ralesensitive arsets $150 million Raresensitive liabilities =$140 miltion a. Calculate the repricing gap and the impact on net interest income of a I percent increase in interest rates for each position. b. Calculate the impact on net interest income of each of the above situations. assuming a 1 percent decrease in interest nates. c. What conclusion can you draw about the repricing model from these resuits