Which of the following is an appropriate change to make on a banks balance sheet when GAP

Question:

Which of the following is an appropriate change to make on a bank’s when GAP is negative, spread is expected to remain unchanged, and interest rates are expected to rise?
a. Replace fixed-rate loans with rate-sensitive loans.
b. Replace marketable securities with fixed-rate loans.
c. Replace fixed-rate CDs with rate-sensitive CDs.
d. Replace equity with demand deposits.
e. Replace marketable securities with vault cash.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...