Loyola Bank Classifies Its Assets and Liabilities and the Period

question 149

Multiple Choice

Loyola Bank classifies its assets and liabilities and the period (maturity buckets) within which they are subject to repricing as on March 31,2015 as follows: $\begin{array} { l c c } \text { (dollars in millions) } & \text { Interest-sensitive } & \text { Interest-sensitive } \\\text { Maturity buckets } & \text { assets } & \text { liabilities } \\\text { One week } & \$ 50 & \$ 45 \\8 \text { to 25 days } & 75 & 70 \\25 \text { to } 40 \text { days } & 60 & 75 \\40 \text { to } 60 \text { days } & 70 & 80 \\60 \text { to } 90 \text { days } & 80 & 70 \\90 \text { to } 180 \text { days } & 180 & 160 \\180 \text { to } 365 \text { days } & 210 & 190\end{array}$
What is the interest-sensitivity ratio of the bank for the 90 to 180 days maturity bucket?

• A)0.82
• B)0.88
• C)0.91
• D)0.92
• E)0.85

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Definitions:

Normal Fault

A type of fault where the hanging wall slides downward relative to the footwall due to tensile stress in the Earth's crust.

Strike-Slip Fault

A type of fault in which two blocks of the Earth's crust slide past each other horizontally along the fault plane.

Reverse Fault

A type of fault where the hanging wall moves up relative to the footwall, often created by compressive forces.

Normal Fault

A type of fault where the hanging wall has moved downward relative to the footwall, typically associated with extensional tectonics.