Refer to the following table:
Premier National Bank
$$\begin{array} { | l | l | l | }
\hline { \text { Premier National Bank } } \
\hline & { \text { Assets } } & \text { Liabilities } \
\hline \text { Interest-sensitive } & \$ 60 \text { million } & \$ 90 \text { million } \
\hline \text { Fixed-rate } & \$ 70 \text { million } & \$ 40 \text { million } \
\hline
\end{array}$$
Premier National bank has a repricing gap of:
A) -30
B) +30
C) +60
D) 0

Question

Refer to the following table:
Premier National Bank
$$\begin{array} { | l | l | l | } 
\hline { \text { Premier National Bank } } \
\hline & { \text { Assets } } & \text { Liabilities } \
\hline \text { Interest-sensitive } & \$ 60 \text { million } & \$ 90 \text { million } \
\hline \text { Fixed-rate } & \$ 70 \text { million } & \$ 40 \text { million } \
\hline
\end{array}$$
Premier National bank has a repricing gap of:
A) -30
B) +30
C) +60
D) 0

Quizplus · Accepted Answer

The repricing gap is calculated by subtracting the amount of rate-sensitive liabilities from the amount of rate-sensitive assets. In this case, the rate-sensitive assets are $100 million and the rate-sensitive liabilities are $130 million, resulting in a negative gap of -$30 million.

Refer to the Following Table: Premier National Bank Premier National Bank Has a Repricing Gap Of: A) -30

Refer to the Following Table:
Premier National Bank Premier National Bank Has a Repricing Gap Of:
A) -30