Choose all that apply. read the following paragraph. select each of the ways max was financially responsible. max needed to make a tough decision about a purchase. he stated his problem, listed the alternatives, selected criteria, and evaluated the alternatives to make his decision. he also shopped around for the best price. he used a credit card to make the purchase and paid as much as he could when the bill came. 1.max paid as much as possible when paying a credit card bill. 2.max used a decision-making method to make tough decisions. 3.max spent wisely. 4.max put money in his savings account.

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.