-What Is the Repricing Gap If a 3-Year Maturity Gap

question 81

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 3-year maturity gap is used? Ignore runoffs.

• A)$21 million.
• B)$44 million.
• C)-$80 million.
• D)-$60 million.
• E)-$120 million.

Interpret the slope of a consumer's budget constraint and its economic significance.

Explain the conditions under which indifference curves can have atypical shapes and what these shapes indicate about consumer preferences.

Recognize the possibility of abnormal consumer responses to income and price changes, including Giffen goods and inferior goods.

Apply consumer choice theory to analyze real-world economic situations and experiments.

---

Definitions:

Alien and Sedition Acts

A series of laws passed in 1798 that restricted the activities of foreign residents in the United States and limited freedom of speech and of the press.

Defame Government

Defaming the government involves making false and damaging statements against the governmental body or its officials, which may be restricted under certain laws.

Anti-American Organizations

Groups or entities that oppose the United States, its policies, people, or values, often engaging in activities that are counterproductive to U.S. interests.

Immigration

Relocating permanently to a country different from one's birthplace.