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Would appreciate if the above 2 cases are answered, each case has A question and B. Thank you. Case 1: A bank with Interest-Sensitive Assets

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Would appreciate if the above 2 cases are answered, each case has A question and B. Thank you.

Case 1: A bank with Interest-Sensitive Assets of $800 million & Interest-Sensitive Liabilities of $250 million. Comment on interest-sensitive gap. a) Identify if the given gap is positive gap or negative gap. b) On the basis of your answer justify the gap. Solution: Case 2: X bank has an Interest-Sensitive Liabilities of $900 million. However, their Interest-Sensitive Assets are $760 million. Comment on interest-sensitive gap. a) Identify if the given gap is positive gap or negative gap. b) On the basis of your answer justify the gap. Solution

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