The following are the assets and liabilities of a government security dealer.

-Use the repricing model to determine the funding gap for a maturity bucket of 91 days.
A)-$60 million.
B)-$150 million.
C)$0.
D)-$250 million.

Question

The following are the assets and liabilities of a government security dealer.

-Use the repricing model to determine the funding gap for a maturity bucket of 91 days.
A)-$60 million. 
B)-$150 million. 
C)$0. 
D)-$250 million.

Quizplus · Accepted Answer

91-day maturity bucket
RSA = 30-day T-Bills + 91-day T-Bills; RSL = 14-day repurchase agreement
GAP = RSA - RSL = (150 + 275) - 575 = 425 - 575 = $150.

The Following Are the Assets and Liabilities of a Government