Use the Repricing Model to Determine the Funding Gap for a Maturity

question 81

Multiple Choice

Use the repricing model to determine the funding gap for a maturity bucket of 30 days.

• A)-$425 million.
• B)-$95 million.
• C)-$10 million.
• D)-$475 million.
• E)+$150 million. [Refer to: 8-89]

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Definitions:

Materials Quantity Variance

A measure of the difference between the actual quantity of materials used in production and the standard quantity expected to be used, multiplied by the standard cost per unit of materials.

August

The eighth month of the year in the Gregorian calendar.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard hourly wage rate.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) cost allocated to production, based on the standard variable overhead rate.