The Following Are the Assets and Liabilities of a Government

question 107

Multiple Choice

The following are the assets and liabilities of a government security dealer. $$\begin{array} { | l | l | } \hline \text { Assets: } & \text { \$150 million } 30 \text { day Treasury bills } \\\hline & \text { \$275 million } 91 \text { day Treasury bills } \\\hline & \text { \$90 million } 180 \text { day municipal notes } \\\hline & \$ 350 \text { million } 2 \text { year Treasury notes } \\\hline & \\\hline \text { Liabilities: } & \text { \$575 million } 14 \text { day repurchase agreements } \\\hline & \$ 290 \text { million } 1 \text { year commercial paper } \\\hline\end{array}$$
-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:

Binet

Binet, Alfred (1857-1911), was a French psychologist who, together with Theodore Simon, developed the first practical IQ test, the Binet-Simon scale.

Intelligence Test

A standard assessment tool designed to measure cognitive abilities, such as reasoning, problem-solving, and understanding complex ideas.

Reasoning

The process of figuring out the implications of particular beliefs.

Abstract Thinking

The ability to think about objects, principles, and ideas that are not physically present, a higher-level cognitive skill enabling conceptual understanding.