-What Is the FI's Maturity Gap?
A)-2

question 63

Multiple Choice

$$\begin{array} { | l | r | r | l | r | c | } \hline \text { Assets } & \begin{array} { l } \text { Amount } \\\text { (\$ millions) }\end{array} & \begin{array} { l } \text { Annual } \\\text { Rate }\end{array} & \text { Liabilities } & \begin{array} { l } \text { Amount } \\\text { (\$ millions) }\end{array} & \begin{array} { l } \text { Annual } \\\text { Rate }\end{array} \\\hline \text { 2-year loans } & \$ 40 & 8 \% & \text { 3-year CD } & \$ 60 & 7 \% \\\hline \text { 3-year loans } & \$ 60 & 8 \% & \text { 5-year term deposit } & \$ 30 & 6 \% \\\hline & & & \text { Equity } & \$ 10 & \\\hline \text { Total } & \$ 100 & & \text { Total } & \$ 100 & \\\hline\end{array}$$
-What is the FI's maturity gap?

• A)-2.03 years.
• B)-2.50 years.
• C)-1.07 years.
• D)-0.70 years.
• E)-0.40 years.

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Definitions:

Measures of Reliability

Statistical tools used to assess the consistency and accuracy of data or measurement instruments over time.

Central Tendency

A statistical measure that identifies the central or typical value of a dataset, such as the mean, median, or mode.

Correlation Analyses

A statistical process used to evaluate the degree to which two variables are related or move together.

Paraphrase Method

The technique of expressing the meaning of something written or spoken using different words, especially to achieve greater clarity.