Which of the following is not correct? select one: a. taxes levied on sellers and taxes levied on buyers are not equivalent. b. a tax places a wedge between the price that buyers pay and the price that sellers receive. c. the wedge between the buyers’ price and the sellers’ price is the same, regardless of whether the tax is levied on buyers or sellers. d. in the new after-tax equilibrium, buyers and sellers share the burden of the tax.

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.