: Circle TRUE or FALSE to these next statements, using the data provided above. Assume all else stays the same for each statement.

TRUE or FALSE: If 65% of the institutions invested assets are considered Interest Sensitive Assets, while 45% of liabilities are considered to be Interest Sensitive Liabilities, then when market interest rates rise next year, GAP will rise causing ROA & ROE to rise.

TRUE or FALSE: If the institution shifts $10 million from Corporate loans to Personal/Consumer loans, then the default rate associated with the loan portfolio will rise.

TRUE or FALSE: If Required Reserves were to require the shifting of invested funds into cash holdings (causing a movement of funds from other asset accounts), then the GAP, ROA & ROE would all rise.

TRUE or FALSE: Replacing $1 billion in five-year NCDs with $1 billion of 1-year NCDs will increase ROA & ROE in the current year.