An FI finances a $250,000 2-year fixed-rate loan with a $200,000 1-year fixed-rate CD.Use the repricing model to determine (a)the FI's repricing (or funding)gap using a 1-year maturity bucket,and (b)the impact of a 100 basis point (0.01)decrease in interest rates on the FI's annual net interest income?
A)$0;$0.
B)-$200,000;+$2,000.
C)-$200,000;-$2,000.
D)+$50,000;-$500.

Question

Quizplus · Accepted Answer

The Answer of An FI finances a $250,000 2-year fixed-rate loan with a $200,000 1-year fixed-rate CD.Use the repricing model to determine (a)the FI's repricing (or funding)gap using a 1-year maturity bucket,and (b)the impact of a 100 basis point (0.01)decrease in interest rates on the FI's annual net interest income?
A)$0;$0.
B)-$200,000;+$2,000.
C)-$200,000;-$2,000.
D)+$50,000;-$500.

An FI Finances a $250,000 2-Year Fixed-Rate Loan with a $200,000