8-70 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.
E)-$290 million.

Question

Quizplus · Accepted Answer

The repricing model calculates the funding gap by comparing the amount of rate-sensitive assets to rate-sensitive liabilities within a specific maturity bucket. A negative funding gap indicates more liabilities than assets, which is the case with -$350 million.

8-70 Use the Repricing Model to Determine the Funding Gap