Consider the Following Repricing Buckets and Gaps What Is the Annualised Change in the Bank's Future Net

question 45

Multiple Choice

Consider the following repricing buckets and gaps: $$\begin{array} { | l | r | r | r | } \hline \text { Repricing bucket } & { \text { Assets } } & { \text { Liabilities } } & { \text { Gaps } } \\\hline \text { 1 day } & \$ 50000 & \$ 120000 & - \$ 70000 \\\hline \text { 1 day to 3 months } & \$ 100000 & \$ 70000 & \$ 30000 \\\hline \text { 3 to 6 months } & \$ 100000 & \$ 100000 & \$ 0 \\\hline \text { 6 to 12 months } & \$ 250000 & \$ 80000 & \$ 170000 \\\hline 1 \text { to 5 years } & \$ 75000 & \$ 130000 & - \$ 55000 \\\hline \text { Over 5 years } & \$ 25000 & \$ 100000 & - \$ 75000 \\\hline\end{array}$$ What is the annualised change in the bank's future net interest income if the average rate change for assets and liabilities that can be repriced within one year is a decrease of 100 basis points?

• A)$17 000
• B)-$17 000
• C)$13 000
• D)-$13 000

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Definitions:

Trenton

The capital city of New Jersey, United States, known for its historical significance, particularly in the American Revolutionary War.

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A U.S. state located in the Mid-Atlantic region, known for its significant historical contributions, diverse population, and as the site of major battles during the American Revolutionary War.

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Military leaders from Britain who played significant roles in various conflicts, including during the Revolutionary War and the War of 1812 against the United States.

Hold on the South

A phrase indicating a strong influence or control over the southern United States, often used in historical contexts such as politics or social norms.