-What Is the Repricing Gap Over the 1-Year Maturity Bucket

question 23

Multiple Choice

$$\begin{array} { | l | l | l | l | l | l | } \hline \text { Assets } & \text { Par Amount } & \text { Rate } & \text { Liabilities } & \text { Par Amount } & \text { Rate } \\\hline \text { 2-year commercial loans } & \$ 600 \text { million } & 10 \% & \text { 1-year CDs } & \$ 900 \text { million } & 7 \% \\\hline \text { 1-year Treasury bills } & \$ 400 \text { million } & & \text { Net Worth } & \$ 100 \text { million } & \\\hline\end{array}$$
-What is the repricing gap over the 1-year maturity bucket?

• A)+$100 million.
• B)-$500 million.
• C)-$100 million.
• D)+$500 million.
• E)-$900 million.

---

Definitions:

Survival

The ability of an organism, entity, or business to continue to live or exist, especially under difficult or threatening conditions.

Quality Problems

Issues arising from products or services not meeting the established standards of excellence, leading to dissatisfaction or functional failures.

Decentralized

Pertains to the distribution of functions, powers, people, or things away from a central location or authority, often to increase efficiency or responsiveness.

Moderate

An approach or level characterized by avoidance of extremes, typically aiming for a balanced or middle-ground position.