-What Is the Repricing Gap If a 0 to 3

question 102

Multiple Choice

$$\begin{array} { | l | c | l | l | c | c | } \hline & \text { Face Value } & \begin{array} { l } \text { Runoff } \\< \mathbf { 1 } \text { year }\end{array} & & \text { Face Value } & \begin{array} { c } \text { Runoff } \\< \mathbf { 1 } \text { year }\end{array} \\\hline \text { 3-mo. T-Bills } & \$ 60 \mathrm {~m} & & \text { Demand Dep. } & \$ 180 \mathrm {~m} & 10 \text { percent } \\\hline \text { 2-yr Bonds } & \$ 60 \mathrm {~m} & 5 \text { percent } & \text { Equity } & \$ 20 \mathrm {~m} & \\\hline \text { 5-yr Bonds } & \$ 80 \mathrm {~m} & 10 \text { percent } & & & \\\hline\end{array}$$
-What is the repricing gap if a 0 to 3 month maturity gap is used? Ignore runoffs.

• A)$60 million.
• B)$40 million.
• C)-$80 million.
• D)-$120 million.
• E)-$180 million.

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Definitions:

Alcohol Use Disorder

A medical condition characterized by an impaired ability to stop or control alcohol use despite negative social, occupational, or health consequences.

Psychoanalyst

A therapist who uses psychoanalysis, a therapeutic technique founded by Freud, to explore unconscious motives and conflicts in patients.

Placebo Effect

Experimental results caused by expectations alone; any effect on behavior caused by the administration of an inert substance or condition, which the recipient assumes is an active agent.

Alleviation

The act of making something less severe or more bearable, often used in reference to pain, symptoms, or stress.