The following shows the balance sheet for a bank. The manager wants to get an idea about the interest rate risk faced by her bank. She asks the research staff to conduct a basic gap analysis. She is a bit worried about the interest rate risk (because her job depends on how successfully she manages this risk). As a member of the research staff, which of the following actions would you recommend to be taken to reduce the interest rate risk? Assets ($million) Liabilities & NW ($million) Rate Sensitive Assets $40 Rate Sensitive Liabilities $100 Variable-rate loans Variable-rate CDs Short-term loans Money market deposit accounts Short-term securities Fixed-Rate Assets $110 Fixed-Rate Liabilities $50 Reserves Checkable deposits Long-term loans Savings deposits Long-term securities Long-term CDs Equity capital There are more than one correct answer. Reduce the amounts in money market deposit accounts and issue more long-term CDs. Try to reduce your long-term loans and increase your short-term loans. Try to reduce your variable-rate CDs and issue more saving accounts. Sell some of your short-term securities and use the proceeds to buy long- term securities. Try to reduce the amount of savings deposits and issue additional variable-rate CDs. Sell some of your long-term securities and use the proceeds to buy short- term securities. Reduce the amounts of long-term CDs and issue more money market deposit accounts. Try to reduce your short-term loans and increase your long-term loans. The following shows the balance sheet for a bank. The manager wants to get an idea about the interest rate risk faced by her bank. She asks the research staff to conduct a basic gap analysis. She is a bit worried about the interest rate risk (because her job depends on how successfully she manages this risk). As a member of the research staff, which of the following actions would you recommend to be taken to reduce the interest rate risk? Assets ($million) Liabilities & NW ($million) Rate Sensitive Assets $40 Rate Sensitive Liabilities $100 Variable-rate loans Variable-rate CDs Short-term loans Money market deposit accounts Short-term securities Fixed-Rate Assets $110 Fixed-Rate Liabilities $50 Reserves Checkable deposits Long-term loans Savings deposits Long-term securities Long-term CDs Equity capital There are more than one correct answer. Reduce the amounts in money market deposit accounts and issue more long-term CDs. Try to reduce your long-term loans and increase your short-term loans. Try to reduce your variable-rate CDs and issue more saving accounts. Sell some of your short-term securities and use the proceeds to buy long- term securities. Try to reduce the amount of savings deposits and issue additional variable-rate CDs. Sell some of your long-term securities and use the proceeds to buy short- term securities. Reduce the amounts of long-term CDs and issue more money market deposit accounts. Try to reduce your short-term loans and increase your long-term loans