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A bank has the following balance sheet. What is the gap? (Rate sensitive assets - rate sensitive liabilities) Assets Amount (in millions) Liabilities Amount (in

A bank has the following balance sheet. What is the gap? (Rate sensitive assets - rate sensitive liabilities)

Assets Amount (in millions) Liabilities Amount (in millions)
///////////////////////////// ////////////////// //////////////////// ///////////////////
Required Reserves $1,100.00 Checking Accounts $1,000.00
Floating-rate Personal Loans $2,000.00 NOW accounts $1,750.00
Floating-rate Mortgages $1,000.00 MMDAs $4,150.00
Fixed Rate Mortgages $1,208.00 Long Term CD's $950.00
Short-term Treasury securities $1,500.00 Short-term CDs $1,500.00
Fixed Rate Personal Loans $800.00 Long Term Bonds issued by the Bank $500.00
Long term Treasuries $750.00 Short Term Notes issued by the Bank $450.00
Bank Building $100.00 Total Liabilities $10,300.00
Excess Reserves $600.00 Capital /////////////////////
Floating Rate Commercial Loans $2,000.00 Bank Stock $1,000.00
Fixed Rate Commercial Loans $900.00 Retained Earnings $658.00
Total Assets $11,958.00 Total Liabilities and Capital $11,958.00

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