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Consider the Following Information to Answer the Question What Is the Repricing Gap for the FI?
A)$0
B)$5,000,000

Question 14

Multiple Choice

Consider the following information to answer the question:  Assets  Amount  Rate  Liabilities  Amount  Rate  Rate $3500000010% Rate $400000008% Sensitive  Sensitive  Fixed rate $210000009% Fixed rate $120000007% Non-earning $4000000 Equity $8000000\begin{array} { | l | l | l | l | l | l | } \hline \text { Assets } & \text { Amount } & \text { Rate } & \text { Liabilities } & \text { Amount } & \text { Rate } \\\hline \text { Rate } & \$ 35000000 & 10 \% & \text { Rate } & \$ 40000000 & 8 \% \\\hline \text { Sensitive } & & & \text { Sensitive } & & \\\hline \text { Fixed rate } & \$ 21000000 & 9 \% & \text { Fixed rate } & \$ 12000000 & 7 \% \\\hline \text { Non-earning } & \$ 4000000 & & \text { Equity } & \$ 8000000 & \\\hline\end{array} What is the repricing gap for the FI?


A) $0
B) $5,000,000
C) $9,800,000
D) -$5,000,000

Correct Answer:

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