Please respond to the following discussion if you agree or disagree and why:

Economic conditions has been a crucial factor to how well or not my bank has performed during the simulation. Throughout the simulation, I have noticed how fluctuations within the inflation rate can play a role towards a bank's profitability. I have learned that inflation rates and interest rates go hand to hand and that it can impact market rates for both loans and deposits. If inflation rates rise, so does the market rate and if inflation rates decline, then market rates will follow. The inflation rate is heavily looked upon within my bank as it determined rather or not we charge less or charge more in interest with our loans and rather or not if we give more or less interest with our deposits. When making adjustments with our interest rates, we based our adjustments by our interest gap position. My bank was in a negative interest gap position for most of the simulation and we produced the most profit and performed well when inflation declined. We thrived when market and inflation rates decreased and followed a defense strategy to mitigate the risk of market rates increasing when inflation rises. When this occurs and being in this type of interest gap position, my bank would have a higher risk of decreasing our net interest margin (NIM) . To compensate for this risk, we decreased our interest-sensitive liabilities by charging less interest with our deposits to reduce interest expenses, lengthened the maturities of our liabilities by increasing the maturities for our fixed and variable time-accounts, and increased interest-sensitive assets by offering attractive rates for our loans, setting a semi-lenient credit policy to grow our loans but a stricter policy on loans that involved higher risk such as real estate loans. Inflation rate has helped my bank decide if we should grow or minimize our loans and deposits and should be considered when making adjustments.