$$\begin{array} { | l | c | c | l | c | c | }
\hline \text { Assets } & \text { Amount } & \text { Rate } & \text { Liabilities } & \text { Amount } & \text { Rate } \
\hline \begin{array} { l }
\text { Rate } \
\text { Sensitive }
\end{array} & \$ 35,000,000 & 10 \% & \begin{array} { l }
\text { Rate } \
\text { Sensitive }
\end{array} & \$ 40,000,000 & 8 \% \
\hline \text { Fixed Rate } & \$ 21,000,000 & 9 \% & \text { Fixed Rate } & \$ 12,000,000 & 7 \% \
\hline \text { Non-earning } & \$ 4,000,000 & & \text { Equity } & \$ 8,000,000 & \
\hline
\end{array}$$
-What is the repricing gap for the FI?
A)$0.
B)$5,000,000.
C)$9,800,000.
D)-$5,000,000.
E)-$8,000,000.

Question

$$\begin{array} { | l | c | c | l | c | c | } 
\hline \text { Assets } & \text { Amount } & \text { Rate } & \text { Liabilities } & \text { Amount } & \text { Rate } \
\hline \begin{array} { l } 
\text { Rate } \
\text { Sensitive }
\end{array} & \$ 35,000,000 & 10 \% & \begin{array} { l } 
\text { Rate } \
\text { Sensitive }
\end{array} & \$ 40,000,000 & 8 \% \
\hline \text { Fixed Rate } & \$ 21,000,000 & 9 \% & \text { Fixed Rate } & \$ 12,000,000 & 7 \% \
\hline \text { Non-earning } & \$ 4,000,000 & & \text { Equity } & \$ 8,000,000 & \
\hline
\end{array}$$
-What is the repricing gap for the FI?
A)$0.
B)$5,000,000.
C)$9,800,000.
D)-$5,000,000.
E)-$8,000,000.

Quizplus · Accepted Answer

The repricing gap is calculated as the difference between rate-sensitive assets and rate-sensitive liabilities. Here, it is $35,000,000 (assets) - $40,000,000 (liabilities) = -$5,000,000.

-What Is the Repricing Gap for the FI? A)$0

-What Is the Repricing Gap for the FI?
A)$0