A bank has interest sensitive liabilities equal to $100 million and interest sensitive assets equal to $80 million, then the gap is
A) $20 million
B) -$20 million
C) $180 million
D) -$180 million

Question

Quizplus · Accepted Answer

The gap is calculated as interest sensitive assets minus interest sensitive liabilities. In this case, $80 million - $100 million = -$20 million.

A Bank Has Interest Sensitive Liabilities Equal to $100 Million