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The Following Are the Assets and Liabilities of a Government

Question 77

Multiple Choice

The following are the assets and liabilities of a government security dealer.  Assets:  $150 million 30 day Treasury bills  $275 million 91 day Treasury bills  $90 million 180 day municipal notes $350 million 2 year Treasury notes  Liabilities:  $575 million 14 day repurchase agreements $290 million 1 year commercial paper \begin{array} { | l | l | } \hline \text { Assets: } & \text { \$150 million } 30 \text { day Treasury bills } \\\hline & \text { \$275 million } 91 \text { day Treasury bills } \\\hline & \text { \$90 million } 180 \text { day municipal notes } \\\hline & \$ 350 \text { million } 2 \text { year Treasury notes } \\\hline & \\\hline \text { Liabilities: } & \text { \$575 million } 14 \text { day repurchase agreements } \\\hline & \$ 290 \text { million } 1 \text { year commercial paper } \\\hline\end{array}
-Use the repricing model to determine the funding gap for a maturity bucket of 91 days.


A) -$60 million.
B) -$150 million.
C) $0.
D) -$250 million.
E) -$300 million.

Correct Answer:

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