The Following Information Is from First Yaupon Savings Association [Reference: 8-99]
-What Is the Repricing Gap Over the 1-Year

question 21

Multiple Choice

The following information is from First Yaupon Savings Association. $$\begin{array} { | l | l | l | l | l | l | } \hline \text { Assets } & \text { Par Amount } & \text { Rate } & \text { Liabilities } & \text { Par Amount } & \text { Rate } \\\hline \text { 2-year commercial loans } & \text { \$600 million } & 10 \% & \text { 1-year CDs } & \text { \$900 million } & 7 \% \\\hline \text { 1-year Treasury bills } & \text { \$400 million } & & \text { Net Worth } & \text { \$100 million } & \\\hline\end{array}$$ [Reference: 8-99]
-What is the repricing gap over the 1-year maturity bucket?

• A)+$100 million.
• B)-$500 million.
• C)-$100 million.
• D)+$500 million.
• E)-$900 million. [Refer to: 8-99]

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Definitions:

Shares Of Stock

Units of ownership interest in a corporation or financial asset that provide an equal distribution in any profits, if any are declared, in the form of dividends.

Market Economy

An economic system in which supply and demand from consumers and businesses guide the production, distribution, and pricing of goods and services.

Economic Pie

A metaphor for the total amount of wealth or resources available in an economy.

Central Distributing Agency

An organization or entity responsible for the centralized procurement and distribution of goods or services.