a) what is the cumulative one year repricing gap (CGAP) for this bank? show your calculations
b) suppose inerestlt decrease. Assume interest rate changes for rate sensitive assets are equal to inerrst eate changes for rate sensitive liablities. Will net interest income of Beta Bank increase of decrease because of the change in interest rates? explain your answer
QUESTION 2 Bata Bank has the following rate sensitive assets: - Sb-month consumer loans $40 million - Three-month Treasury bills: $20 million Six-month Treasury bills. $10 million Bete Bank has the following rate sensitive llabilities: - Three-month certificates of deposits: S60 million - Sbc-month commercial paper. $40 million a) What is the cumulative one year repricing gap (CGAP) for this bank? Show your calculations b) Suppose interest rates decrease. Assume interest rate changes for rate sensitive assets are equal to interest rate changes for rate sensitive fiabilities Will net interest income of Beta Bank increase or decrease because of the change in interest rates? Explain your answer For the toolba presa ALT+F10 (PC) O ALT+FN6F10 (Mac) B IV & Paragraph Arial 14px AZ IXO QUESTION 3 Save AS Chiet Sare and Submit to save and submit. Click Save All Anners to see all the up QUESTION 2 - Beta Bank has the following rate sensitive assets: Six-month consumer loans: $40 million Three-month Treasury bills: $20 million Six-month Treasury bills: $10 million Beta Bank has the following rate sensitive liabilities: Three-month certificates of deposits: $60 million Six-month commercial paper. $40 million a) What is the cumulative one year repricing gap (CGAP) for this b) Suppose interest rates decrease. Assume interest rate change Will net interest income of Beta Bank increase or decrease becaus For the toolbar, press ALT+F10 (PC) or ALT+FN+F 10 (Mac). B I US Paragraph Arial 14px QUESTION 2 Bata Bank has the following rate sensitive assets: - Sb-month consumer loans $40 million - Three-month Treasury bills: $20 million Six-month Treasury bills. $10 million Bete Bank has the following rate sensitive llabilities: - Three-month certificates of deposits: S60 million - Sbc-month commercial paper. $40 million a) What is the cumulative one year repricing gap (CGAP) for this bank? Show your calculations b) Suppose interest rates decrease. Assume interest rate changes for rate sensitive assets are equal to interest rate changes for rate sensitive fiabilities Will net interest income of Beta Bank increase or decrease because of the change in interest rates? Explain your answer For the toolba presa ALT+F10 (PC) O ALT+FN6F10 (Mac) B IV & Paragraph Arial 14px AZ IXO QUESTION 3 Save AS Chiet Sare and Submit to save and submit. Click Save All Anners to see all the up QUESTION 2 - Beta Bank has the following rate sensitive assets: Six-month consumer loans: $40 million Three-month Treasury bills: $20 million Six-month Treasury bills: $10 million Beta Bank has the following rate sensitive liabilities: Three-month certificates of deposits: $60 million Six-month commercial paper. $40 million a) What is the cumulative one year repricing gap (CGAP) for this b) Suppose interest rates decrease. Assume interest rate change Will net interest income of Beta Bank increase or decrease becaus For the toolbar, press ALT+F10 (PC) or ALT+FN+F 10 (Mac). B I US Paragraph Arial 14px
