Question

1. Assume a bank has the following balance sheet

   for the 3-year GAP=$?   (Hint: only rate sensitive assets and rate sensitive liabilities count)

   Asset	Potential rate change	Amount		Liability	Potential Rate change	Amount
   Reserves at the Fed	N/A	$200		90-day CDs	0.85%	$200
   6-month T-Bills	2.00%	$400		360-day CDs	1.00%	$300
   3-year Consumer loans	3.00%	$600		Time Deposits 2- year	1.50%	$1200
   10-year mortgages	2.00%	$800		Stockholder’ s equity	N/A	$200
   Total		$2000		Total		$2000

   		-300
   		-400
   		-500
   		-600
   		-700
   		800

Answer 1

answered by: anonymous