Question1: This is exercise is based on problem 3 from "Principles of Bank Management. It has two parts - A & B.

Assets	Potential Rate Change	Amount	Liabilities	Potential Rate Change	Amount
Cash	N/A	$100	90-Day CDs	0.75%	$100
6-month Govt. Bonds	2.00%	$300	360-Day CDs	1.00%	$200
2-year Commercial Loans	3.00%	$400	Time Deposits 2-year	1.50%	$900
5-year Fixed Rate Loans	2.00%	$500	Stockholder Equity	N/A	$100
	Total	$1,300		Total	$1,300

Part A. Using the Balance Sheet from above Calculate the 2 year GAP (include the appropriate accounts that have maturities within 2 years). Input your answer in the $XXX format. If the number is negative use the minus sign in front of the $ sign.

Part B. What is the net impact on net interest income for the 2-year GAP, if interest rates are expected to change as specified in the potential rate change column? Input you answer in the $XXX format. If the number is negative use the minus sign in front of the $.