Using the balance sheet below for a financial institution, and the duration of asset is 3.5 years, the duration of liabilities .5 years. Assets Reserves T-bills Mortgages Commercial Loans Liabilities 5 m Money Market Deposits 5 m 50 m 1-year CDs 85 m 40 m Capital 10 m 5 m What is the amount of Income Gap? -40 m 40 m - 90m -30
Using the balance sheet below for a financial institution, and the duration of asset is 3.5 years, the duration of liabilities .5 years. Assets Reserves T-bills Mortgages Commercial Loans Liabilities 5 m Money Market Deposits 5 m 50 m 1-year CDs 85 m 40 m Capital 10 m 5 m What is the amount of Income Gap? -40 m 40 m - 90m -30
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 2MC
Related questions
Question
None

Transcribed Image Text:Using the balance sheet below for a financial institution, and the duration of asset is 3.5 years,
the duration of liabilities .5 years.
Assets
Reserves
T-bills
Mortgages
Commercial Loans
Liabilities
5 m
Money Market Deposits 5 m
50 m
1-year CDs
85 m
40 m
Capital
10 m
5 m
What is the amount of Income Gap?
-40 m
40 m
- 90m
-30
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning

Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning