Questions 27-29 refer to the following rate sensitivity report for Gotbucks Bank, Inc. ($million).

Maturity Overnight 1-30 days 31-91 days 92-181 days

Assets:

Fed Funds $20

Loans $ 0 $10 $15 $80

Liabilities:

Fed Funds $ 50

Euro CDs $ 5 $25 $40 $ 0

Calculate the funding gap for Gotbucks Bank using (a) a 91 day maturity period and (b) a

181 day maturity period? (Note: Each maturity period is cumulative).

a. $25; +$80

b. $50; $75

c. $75; +$5

d. +$55; $40

e. 0; 0

How will an increase of 25 basis points in all IRs affect Gotbuck's net interest

income over a planning period of 91 days?

a. $0.1875 million

b. $0.1250 million

c. +$0.1375 million

d. $0.0625 million

e. 0

What does Gotbucks Bank's 91 day gap positions reveal about the bank management's

IR forecasts and the bank's IR risk exposure (ignoring the OBS positions)?

a. The bank is exposed to IR decreases and positioned to gain when IR decline.

b. The bank is exposed to IR increases and positioned to gain when IR decline.

c. The bank is exposed to IR increases and positioned to gain when IR increase.

d. The bank is exposed to IR decreases and positioned to gain when IR increase.

e. Insufficient information since OBSA position is unknown.

PLEASE SHOW ALL WORK