Calculate the maturity gap for ABC bank and explain whether ABC bank is more exposed to an increase or decrease in interest rates.

b) ABC bank has the following balance sheet: $60 $140 Assets Cash 5-year Treasury notes 30-year mortgages Total assets 60 Liabilities and Equity Demand deposits 1-year certificates of deposit Equity Total liabilities and equity 160 200 $320 20 $320 Calculate the maturity gap for ABC bank and explain whether ABC bank is more exposed to an increase or decrease in interest rates