Table 23.1
First National Bank

-Referring to Table 23.1,First National Bank has a gap of ________.

Question

Table 23.1
First National Bank
 
-Referring to Table 23.1,First National Bank has a gap of ________.

Quizplus · Accepted Answer

From the table, we can see that the bank has an asset sensitivity gap of $100 million and a liability sensitivity gap of $70 million. To calculate the gap, we subtract the liability sensitivity from the asset sensitivity (100 - 70 = 30). However, since the liability sensitivity is greater than the asset sensitivity, the bank has a negative gap of -30. Therefore, the correct answer is A) -30.

Table 23.1 First National Bank