(b) The following financial statement is for the current year. From the past, you know that 10% of fixed-rate mortgages prepay each year. You also estimate that 10% of checkable deposits and 20% of savings accounts are rate sensitive. Assets (RM) 15,000,000 5,500,000 Reserves Securities 2 years 8,000,000 Residential Mortgages Variables-rate Fixed-rate Liabilities (RM) 1,500,000 Checkable Deposits Money Market 6,000,000 Deposits 8,000,000 Savings Accounts 12,000,000 CDs Variables-rate 2 years Fed Funds Borrowings 2 years 30,000,000 Bank Capital 2,500,000 15,000,000 22,000,000 5,000,000 2,500,000 5,000,000 Commercial loans 2 years Buildings, etc. 12,000,000 3,000,000 2,000,000 5,000,000 Total 100.000.000 Total 100.000.000 (i) What is the current Income Gap for Best Friend Finance? [6 marks] (ii) What will happen to the bank's current net interest income if rates fall by 75 basis points. [4 marks] (c) What are the limitations of income gap analysis? [6 marks] [Total: 20 marks]