The balance sheet of Key Bank (KB) has the following items (all amounts are in $MM). On the Assets side, it reports: 1-year Consumer Loans=$140, 30-year Consumer Loans=$125, 6-month T-notes=$265, 3-year T-bonds=$180, and 30-year Floating-rate Mortgages (adjusted every year)=$120. On the Liabilities and Equity side, it reports: Passbook Savings=$120, 3-month CDs=$280, 6-month CDs=$140, 1-year Time Deposits=$110, 5-year Time Deposits=$80, and Equity Capital=$100. What is KB's cumulative 6-month repricing gap?

	A.	$135 million
	B.	$55 million
	C.	-$275 million
	D.	-$155 million

4 points

QUESTION 8

The treasury dealer division of an investment bank reports the following assets (all amounts are in millions): 30-day T-bills=$150, 91-day T-bills=$275, 6-month T-notes=$90, and 2-year T-notes=$350. It reports the following liabilities: 14-day repurchase agreements=$575 and 1-year commercial papers=$290. What is the change in the dealer's net interest income (NII) over the next 30 days if the interest rates increase by 50 basis points?

	A.	The dealer's NII will decrease by $750,000.
	B.	The dealer's NII will increase by $1.25 million.
	C.	The dealer's NII will decrease by $2.125 million.
	D.	The dealer's NII will increase by $2.375 million.