4. With positive interest-sensitive gap, and interest rates declining possible management response will be:

1. Decrease interest-sensitive assets or increase interest-sensitive liabilities
2. Decrease interest-sensitive liabilities or increase interest-sensitive assets
3. Shorten maturities of assets
4. Lengthen maturities of liabilities

5. If a bank dollar amount of IS assets is less than IS liabilities, it will:

1. Have an IS ratio of less than one
2. Have an IS ratio of one
3. Will have a negative relative IS Gap
4. Both (a) and (c)

6. A seller of a futures contract:

1. Is said to be long futures
2. Agrees to receive the underlying futures price or to deliver the underlying asset
3. Is said to be short futures
4. Both (b) and (c)