Consider the following balance sheet positions for a financial institution:

Rate-sensitive assets	Rate-sensitive liabilities
$200 million	$100 million

1. What is the impact on net interest income of a 1 percent increase in interest rates?

Select one:

a. -$1,000,000

b. Neutral.

c. $1,000,000

d. None of the above.

Refer to the following for Acme National Bank:

1-YEAR RATE-SENSITIVE ASSETS	$ 80,000,000
1-YEAR RATE-SENSITIVE LIABILITIES	$100,000,000
TOTAL ASSETS	$160,000,000
TOTAL LIABILTITIES	$145,000,000

2. What is Acme's one-year repricing gap?

Select one:

a. $80 million

b. $20 million

c. $15 million

d. -$15 million

e. -$20 million