Loyola Bank Classifies Its Assets and Liabilities and the Period

question 100

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-sensitive gap of the bank as on March 31,2015?

• A)-$30 million
• B)$40 million
• C)-$45 million
• D)$32 million
• E)-$38 million

---

Definitions:

Positive Association

A relationship between two variables where an increase in one variable tends to occur with an increase in the other.

Little or No Association

A term describing a weak or non-existent relationship between two variables in a statistical analysis.

Moderately Strong Association

A term describing a fair level of correlation between two variables, indicating that as one variable changes, the other tends to change in a predictable pattern.

Linear Association

A relationship between two variables where changes in the value of one variable are proportionally linked to changes in the value of another variable.