Brendon Brothers Bank reports interest-sensitive assets at $35 million,interest-sensitive liabilities at $60 million and total assets at $80 million.What is the relative IS GAP of the bank?
A)-0.29
B)0.29
C)-0.31
D)0.31
E)-0.33

Question

Quizplus · Accepted Answer

Relative IS GAP = (Interest-sensitive assets - Interest-sensitive liabilities) / Total assets
Relative IS GAP = ($35 million - $60 million) / $80 million
Relative IS GAP = -$25 million / $80 million
Relative IS GAP = -0.31
Therefore, the best choice is C, which is -0.31.

Brendon Brothers Bank Reports Interest-Sensitive Assets at $35 Million,interest-Sensitive Liabilities