Refer to the following table:
First Nationwide Bank
$$\begin{array}{l}
\text { First Nationwide Bank }\
\begin{array} { | l | l | l | }
\hline & { \text { Assets } } & \text { Liabilities } \
\hline \text { Interest-sensitive } & \$ 90 \text { million } & \$ 80 \text { million } \
\hline \text { Fixed-rate } & \$ 60 \text { million } & \$ 40 \text { million } \
\hline
\end{array}
\end{array}$$
First Nationwide bank has a repricing gap of:
A) -10
B) +10
C) +20
D) 0

Question

Refer to the following table:
First Nationwide Bank
$$\begin{array}{l}
\text { First Nationwide Bank }\
\begin{array} { | l | l | l | } 
\hline &  { \text { Assets } } & \text { Liabilities } \
\hline \text { Interest-sensitive } & \$ 90 \text { million } & \$ 80 \text { million } \
\hline \text { Fixed-rate } & \$ 60 \text { million } & \$ 40 \text { million } \
\hline
\end{array}
\end{array}$$
First Nationwide bank has a repricing gap of:
A) -10
B) +10
C) +20
D) 0

Quizplus · Accepted Answer

A positive repricing gap means that a bank has more rate-sensitive liabilities than assets, which indicates that the bank's net interest income will increase with rising interest rates. In this table, the rate-sensitive assets are $150 million, and the rate-sensitive liabilities are $140 million, resulting in a repricing gap of +$10 million.

Refer to the Following Table: First Nationwide Bank First Nationwide Bank Has a Repricing Gap Of: A) -10

Refer to the Following Table:
First Nationwide Bank First Nationwide Bank Has a Repricing Gap Of:
A) -10