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A Bank Has Federal Funds Totaling $25 Million with an Interest-Rate

Question 86

Multiple Choice

A bank has Federal Funds totaling $25 million with an interest-rate sensitivity weight of 1.0.This bank also has loans of $105 million and investments of $65 million with interest rate sensitivity weights of 1.40 and 1.15 respectively.It also has $135 million in interest-bearing deposits with an interest rate sensitivity weight of 0.90 and other money market borrowings of $75 million with an interest rate sensitivity weight of 1.0.What is the dollar interest-sensitive gap for this bank?


A) $50.25 million
B) -$15 million
C) -$50.25 million
D) $34.25 million
E) None of the options is correct.

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