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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