Martha had several unpleasant experiences trying to find the merchandise she needed at a large lumber yard and hardware store. the employees—when she could find them—rarely seemed to know where anything was outside of their own departments. but on her most recent visit, she was pleasantly surprised to find that the store had installed kiosks where she could get directions quickly and accurately. the store had found a technological solution to the services marketing issue of a. intangibility. b. part-time employees. c. perishability. d. inseparability. e. heterogeneity.

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.