Use the repricing model to determine the funding gap for a maturity bucket of 30 days.
A)-$425 million.
B)-$95 million.
C)-$10 million.
D)-$475 million.
E)+$150 million. [Refer to: 8-89]

Question

Quizplus · Accepted Answer

The funding gap in a repricing model is calculated as the difference between rate-sensitive assets and rate-sensitive liabilities within a specific maturity bucket. A negative value, such as -$425 million, indicates that rate-sensitive liabilities exceed rate-sensitive assets, leading to a potential interest rate risk if rates rise.

Use the Repricing Model to Determine the Funding Gap for a Maturity