Use the data for City Bank to answer the following questions. Note that the Directors of City Bank have established the following policy guidelines...

Use the data for City Bank to answer the following questions. Note that the Directors of City Bank have established the following policy guidelines for allowable interest rate risk:

            Over a 1-year time frame, the ratio of rate sensitive assets to rate sensitive liabilities

            should be between 0.85 and 1.15.

            For a + 2% or -2% rate shock, economic value of equity should not fall by more than

            10%.

• 1. According to GAP Analysis, what is the bank’s interest rate bet (risk exposure) over the next year? Cite specific data to support your answer.