The balance sheet of Key Bank (KB) has the following items (all amounts are in SMM). 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?

The balance sheet of Key Bank (KB) has the following items (all amounts are in SMM). 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?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Financial Statements

Financial statements (or financial reports) are the formal records of the financial activities that are undertaken by a firm. They are convenient instruments used for analyzing a company’s financial position and performance. Financial ratios are created with the help of the numerical values that are derived from the financial statements. They give meaningful information about the financial performance of the company.

Question

The balance sheet of Key Bank (KB) has the following items (all amounts are in SMM). 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

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