The First National Bank of Goatsville finds that its asset and liability portfolio contain the following distribution of maturities and repricing opportunities:

Interest-sensitive assets	Coming Week	Next 30 Days	Next 31-90 Days	More Than 90 Days
Loans	$ 120.00	$ 170.00	$ 245.00	$ 265.00
Securities	$ 10.50	$ 13.00	$ 20.00	$ 35.00
Interest-sensitive liabilities	Coming Week	Next 30 Days	Next 31-90 Days	More Than 90 Days
Transaction deposits	$ 180.00	$ -	$ -	$ -
Time deposits	$ 80.00	$ 175.00	$ 128.00	$ 150.00
Money market borrowings	$ 128.00	$ 80.00	$ 60.00	$ 43.00

1. Calculate the repricing GAP for each time period, as well as the cumulative GAP. Hint: use the following table to structure your calculations.

   	Coming Week	Next 30 Days	Next 31-90 Days	More Than 90 Days
   GAP
   Cumulative GAP

2. For each of the 4 time periods given, discuss whether First National Bank of Goatsville would benefit from falling or rising interest rates.
3. c.Focus on the coming week time period only. Assume that (i) time deposits and money market borrowings mature, (ii) loans mature, (iii) all other rate-sensitive items are repricing, and (iv) no other cash inflows or outflows are expected. What is the implication for the bank from a liquidity risk management point of view? How can the bank navigate this situation?