. Use the following balance sheet to answer the questions below:

ASSETS	LIABILITIES + BANK CAPITAL
Cash Reserves $ 10 million	Demand Deposits $ 100 million
Rate-Sensitive Assets	Rate-Sensitive Liabilities
Short-term securities $ 50 million	CDs $ 120 million
	Money market $ 40 million
Fixed Rate Assets
Long-term loans $ 150 million
Long-term bonds $ 90 million	Bank Capital $ 40 million
TOTAL: $ 300 MILLION	TOTAL: $ 300 MILLION

(a) Does this bank benefit or suffer from unanticipated increases in interest rates? Why?

(b) Identify and explain three strategies for this bank if it anticipates higher interest rates.