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-What Is the Weighted Average Maturity of the Liabilities of |

Question 97

Multiple Choice

 Assets  Amount  ($ millions)   Annual  Rate  Liabilities  Amount  ($ millions)   Annual  Rate  2-year loans $408% 3-year CD $607% 3-year loans $608% 5-year term deposit $306% Equity $10 Total $100 Total $100\begin{array} { | l | r | r | l | r | c | } \hline \text { Assets } & \begin{array} { l } \text { Amount } \\\text { (\$ millions) }\end{array} & \begin{array} { l } \text { Annual } \\\text { Rate }\end{array} & \text { Liabilities } & \begin{array} { l } \text { Amount } \\\text { (\$ millions) }\end{array} & \begin{array} { l } \text { Annual } \\\text { Rate }\end{array} \\\hline \text { 2-year loans } & \$ 40 & 8 \% & \text { 3-year CD } & \$ 60 & 7 \% \\\hline \text { 3-year loans } & \$ 60 & 8 \% & \text { 5-year term deposit } & \$ 30 & 6 \% \\\hline & & & \text { Equity } & \$ 10 & \\\hline \text { Total } & \$ 100 & & \text { Total } & \$ 100 & \\\hline\end{array}
-What is the weighted average maturity of the liabilities of the FI?


A) 3.67 years.
B) 3.30 years.
C) 3.00 years.
D) 5.00 years.
E) 4.33 years.

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