Multiple Choice
Given the following information:
Interest sensitive assets = $300 30-day commercial paper
Interest sensitive liabilities = $400 90-day CDs
30-day commercial paper is 50 percent as volatile as 90-day T-bills
90-day CDs are 120 percent as volatile as 90-day T-bills
Calculate the standardized gap for the bank.
A) $160
B) $563
C) -$100
D) -$330
Correct Answer:
Verified
Correct Answer:
Verified
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