naging Interest Rate Risk) Financial institutions, banks in particular, specialize in earning a higher rate of return on their assets relative to the interest paid on their liabilities. Below is a would be example of a Balance sheet from CIMB bank. Use the Income GAP analysis to answer the questions. Assets include assets with maturity less than one year, variable-rate mortgages, short- term commercial loans, portion of fixed-rate mortgages (say 10%) Liabilities include money market deposits, variable-rate CDs, short-term CDs, federal funds, short-term borrowings, portion of checkable deposits (20%) and a portion of savings (10%) CIMB Bank Balance Sheet 5 5 10 Assets Million RM Liabilities Million RM Reserves and Cash Items Checkable deposits 20 Money Market Securities Deposit accounts 5 Less than 1 year 25 Savings Deposits 20 1 to 2 years CDs Greater than 2 years Variable rate 10 Less than 1 year 15 Residential mortgages 1 to 2 years 5 Greater than 2 Variable rate 20 years 20 Fixed rate (30 year) 20 Fed Funds 5 Commercial Loans Borrowings Less than 1 year 15 Less than 1 year 15 1 to 2 years 1 to 2 years 10 Greater than 2 Greater than 2 years 25 years 5 Physical capital Bank Capital 10 Total 140 Total 140 Questions Answer the question are in the Google form. Submit your answers there 10 5 nswer 7. Use the Maturity Bucket Approach 2 points to calculate the Rate Sensitive Assets with a one-to-two years. (Write only the final Answer). * Your