The Following Are the Assets and Liabilities of a Government

question 23

Multiple Choice

The following are the assets and liabilities of a government security dealer. Use the repricing model to determine the funding gap for a maturity bucket of 91 days.

• A)-$60 million.
• B)-$150 million.
• C)$0.
• D)-$250 million.
• E)-$300 million.

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Definitions:

Allocative Efficiency

A state of the market where resources are allocated in a way that maximizes the net benefit to society.

Productive Efficiency

Productive efficiency occurs when an economy is operating at its maximum capacity, producing goods and services at the lowest possible cost per unit.

Marginal-Cost-Marginal-Benefit Rule

The marginal-cost-marginal-benefit rule states that optimal decision-making occurs when the marginal cost of an action equals its marginal benefit, ensuring efficient resource allocation.

Optimal Project Size

The most efficient scale of a project, considering factors like cost, resources, and expected benefits, to achieve the best possible outcome.