The following are the assets and liabilities of a government security dealer.

-Use the repricing model to determine the funding gap for a maturity bucket of 30 days.
A)-$425 million.
B)-$95 million.
C)-$10 million.
D)-$475 million.

Question

The following are the assets and liabilities of a government security dealer.

-Use the repricing model to determine the funding gap for a maturity bucket of 30 days.
A)-$425 million. 
B)-$95 million. 
C)-$10 million. 
D)-$475 million.

Quizplus · Accepted Answer

30-day maturity bucket
RSA = 30-day T-Bills; RSL = 14-day repurchase agreement
GAP = RSA - RSL = 150 - 575 = -$425.

The Following Are the Assets and Liabilities of a Government