The following is the balance sheet of Boston Bank. The average maturity of demand deposits is estimated at 2 years.
-What is the repricing gap if a 0 to 3 month maturity gap is used? Ignore runoffs.
A)$60 million.
B)$40 million.
C)-$80 million.
D)-$120 million.

Question

The following is the balance sheet of Boston Bank. The average maturity of demand deposits is estimated at 2 years. 
-What is the repricing gap if a 0 to 3 month maturity gap is used? Ignore runoffs.
A)$60 million. 
B)$40 million. 
C)-$80 million. 
D)-$120 million.

Quizplus · Accepted Answer

3-month reprice GAP
GAP = RSA - RSL; note that there are no liabilities that will reprice over the next 30 days.
GAP = $60 million. (the amount of 3-month T-bills asset)

The Following Is the Balance Sheet of Boston Bank