1. Total one-year rate-sensitive assets is

A. $540 million.

B. $580 million.

C. $555 million.

D. $415 million.

E. $720 million.

2. Total one-year rate-sensitive liabilities is

A. $540 million.

B. $580 million.

C. $555 million.

D. $415 million.

E. $720 million.

3. The cumulative one-year repricing gap (CGAP) for the bank is

A. $25 million.

B. $-140 million.

C. $15 million.

D. $-150 million.

E. $-15 million.

4. The gap ratio is

A. .015.

B. -.015.

C. .025.

D. -.144.

E. .154.

5. Suppose that interest rates rise by 2 percent on both RSAs and RSLs. The expected annual change in net interest income of the bank is

A. -$300,000.

B. $500,000.

C. -$2,800,000.

D. -$3,000,000.

E. $300,000.

Liabilities $ 150 1 Equity capital (fixed) $ 120 40 Assets 1 Short-term consumer loans (one-year maturity) 2 Long-term consumer loans 3 Three-month Treasury bills 4 Six-month Treasury notes 5 Three-year Treasury bond 125 2 Demand deposits (two-year maturity) 1303 Passbook savings 130 140 120 1354 Three-month CDs 1705 Three-month bankers acceptances 1206 Six-month commercial paper 1407 One-year time deposits 6 10-year, fixed-rate mortgages 7 30-year, floating-rate mortgages (rate adjusted every nine months) 160 120 40 8 Two-year time deposits $970 $970