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The following balance sheet of bank is available (in millions). Which of the following is true? If demand deposits or savings deposits are included in
The following balance sheet of bank is available (in millions). Which of the following is true? | ||||
If demand deposits or savings deposits are included in your GAP measurement, include the total amount. | ||||
Assets | Amount | Liabilities | Amount | |
3-month T-Bills | $25 | Demand Deposits | $75 | |
270-day T-Bills | $45 | Savings Deposits | $185 | |
1-year consumer loans | $150 | Time Deposits 6-months | $360 | |
10-year corporate loan | $400 | Time Deposits 1-year | $400 | |
30-year mortgage loans | $500 | Stockholders equity | $100 | |
Total | $1,120 | Total | $1,120 |
A | The six-month GAP is $290 million, excluding demand deposits.
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B | The one-year GAP is $140 million, excluding demand and savings deposits.
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C | The 270-day GAP is $290 million, excluding demand deposits.
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D | The six-month GAP is $335 million, excluding demand and savings deposits. |
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