Consider the following school choice problem: there are three students (Dot, Edgar, and Freya) and three schools (Central, North, and West). Central and North have capacities of one student each, and West has a capacity of three students. The students' preference lists are as follows: Dot: Central, North, West, Dot Edgar: North, Central, West, Edgar Freya: Central, North, West, Freya The schools' priority rankings are as follows: Central: Edgar, Freya, Dot North: Dot, Edgar, Freya West: Freya, Dot, Edgar What is the outcome of the student-proposing deferred acceptance algorithm?

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.