8-75 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

Quizplus · Accepted Answer

The repricing gap is calculated by subtracting the amount of rate-sensitive assets from the amount of rate-sensitive liabilities. In this case, the rate-sensitive assets are $15,000,000 ($10,000,000 in loans maturing in less than one year and $5,000,000 in investments maturing in less than one year), while the rate-sensitive liabilities are $20,000,000 ($10,000,000 in deposits maturing in less than one year and $10,000,000 in borrowings maturing in less than one year). Therefore, the repricing gap is -$5,000,000.

8-75 What Is the Repricing Gap for the FI