URGENT: Please help answer the following question Refer to the following for Acm
ID: 382993 • Letter: U
Question
URGENT: Please help answer the following question
Refer to the following for Acme National Bank:
1-YEAR RATE-SENSITIVE ASSETS
$ 80,000,000
1-YEAR RATE-SENSITIVE LIABILITIES
$100,000,000
TOTAL ASSETS
$160,000,000
TOTAL LIABILTITIES
$145,000,000
What is Acme's one-year repricing gap?
Select one:
a. $80 million
b. $20 million
c. $15 million
d. -$15 million
e. -$20 million
1-YEAR RATE-SENSITIVE ASSETS
$ 80,000,000
1-YEAR RATE-SENSITIVE LIABILITIES
$100,000,000
TOTAL ASSETS
$160,000,000
TOTAL LIABILTITIES
$145,000,000
Explanation / Answer
Repricing gap = Rate sensitive asset - Rate sensitive liability
= $80000000 - $100000000
= - $20000000 or - $20 million
So the answer is option e
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