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I am a bank manager with a negative funds gap. I anticipate interest rates rising next quarter and wish to improve my bank's profitability picture.

I am a bank manager with a negative funds gap. I anticipate interest rates rising next quarter and wish to improve my bank's profitability picture. Which policy options should I put into effect in order to improve my bank's profitability picture. Explain

1. Make more fixed rate loans.

2. Issue more variable rate CD's.

3. Purchase more U.S. Treasury and municipal securities.

4. Reduce the bank's equity capital (net worth).

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