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 365 days.
A)+$15 million.
B)-$20 million.
C)-$350 million.
D)-$450 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 365 days.
A)+$15 million. 
B)-$20 million. 
C)-$350 million. 
D)-$450 million.

Quizplus · Accepted Answer

365-day maturity bucket
RSA = 30-day T-Bills + 91-day T-Bill + 180-day municipal notes
RSL = 14-day repurchase agreement + 1-year CDs
GAP = RSA - RSL = (150 + 275 + 90) - (575 + 290) = 515 - 865 = $350.

The Following Are the Assets and Liabilities of a Government