Question 18

What is the Duration Gap for the bank balance sheet shown below?

Assets	Amount	Duration		Liabilities and Equity	Amount	Duration
Cash	80	0.00		Non-interest deposits	100	0.00
Securities	270	4.25		NOW checking	170	1.00
Loans, net	600	4.75		MMDA	330	0.25
Fed funds sold	0			CDs	160	1.75
Non-earning assets	50			Fed Funds purchased	150	0.00
	$1,000			Equity	90
					$1,000

	A.	3.9975 years
	B.	3.465 years
	C.	6.00 years
	D.	0.5852 years
	E.	3.41 years