1. Refer to the following for Acme National Bank: 1-YEAR RATE-SENSITIVE ASSETS $
ID: 2598855 • Letter: 1
Question
1. Refer to the following for Acme National Bank:
1-YEAR RATE-SENSITIVE ASSETS
$ 80,000,000
1-YEAR RATE-SENSITIVE LIABILITIES
$100,000,000
TOTAL ASSETS
$160,000,000
TOTAL LIABILTITIES
$145,000,000
What is Acme's one-year repricing gap?
Select one:
a. $80 million
b. $20 million
c. $15 million
d. -$15 million
e. -$20 million
-
-
-
2. Consider the following balance sheet (in millions of $) for a bank:
What is the bank's duration gap (in years)?
Answer:
-
-
-
3. Consider a bank with the following balance sheet:
What is the bank's duration gap (in years)?
Answer:
1-YEAR RATE-SENSITIVE ASSETS
$ 80,000,000
1-YEAR RATE-SENSITIVE LIABILITIES
$100,000,000
TOTAL ASSETS
$160,000,000
TOTAL LIABILTITIES
$145,000,000
Explanation / Answer
e. -$20 million Repricing gap = Rate-sensitive assets - Rate-sensitive liabilities Rate-sensitive assets = $80 million Rate-sensitive liabilities = $100 million Repricing gap = $80 million - $100 million = -$20 million
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.