The Following Is an FI's Balance Sheet ($Millions)

The following is an FI's balance sheet ($millions) .

Notes to Balance Sheet.

Munis are 2-year 6 percent annual coupon municipal notes selling at par. Loans are floating rates, repriced quarterly. Spot discount yields for 91-day Treasury bills are 3.75 percent. CDs are 1-year pure discount certificates of deposit paying 4.75 percent.

-What is this bank's interest rate risk exposure,if any?

A) The bank is exposed to decreasing interest rates because it has a negative duration gap of -0.21 years.
B) The bank is exposed to increasing interest rates because it has a negative duration gap of -0.21 years.
C) The bank is exposed to increasing interest rates because it has a positive duration gap of +0.21 years.
D) The bank is exposed to decreasing interest rates because it has a positive duration gap of +0.21 years.